Greek Prime Minister George Papandreou, left, talks with his new finance minister, Evangelos Venizelos, at the parliament in central Athens on Friday.
Three years into the Great Recession, the outlook is wobbly in the eurozone, according to the International Monetary Fund. France and Germany are doing well enough to offset some of the economic problems plaguing their neighbors, but in a networked world, nations’ fates are intertwined—so what happens in the U.S. and Japan also affects European countries, and vice versa. —KA
The International Monetary Fund has warned that the risks facing the world economy have increased.
The fund said it was concerned about the continuing Greek debt crisis, the arguments over US deficit plans and the need to curb growth in Asia.
But it said it expected global growth to remain on track, though it lowered its forecasts for the US and UK.
The IMF predicted that the world economy would grow at a rate of 4.3% in 2011 and 4.5% in 2012.
The fund called for greater political leadership in dealing with the eurozone debt crisis and the budget crisis in the US.