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IMF says global economic growth will slow to 0.5% in 2009
Posted: 28 January 2009 2245 hrs
The IMF cautioned that “the uncertainty surrounding the outlook is unusually large.”
“Downside risks continue to dominate, as the scale and scope of the current financial crisis have taken the global economy into uncharted waters,” it said.
The IMF said the advanced economies were now seen contracting by 2.0 percent, a sharp downward revision from the negative 0.3 percent estimate two months ago.
“Despite wide-ranging policy actions, financial strains remain acute, pulling down the real economy,” the 185-nation institution said, warning the outlook was highly uncertain.
The United States, the epicentre of the financial crisis, would endure a 1.6 percent contraction, the IMF said, slashing its prior estimate of 0.9 percent.