Imf cuts global economic growth forecasts: ‘It’s just not on’.
The IMF warned on Wednesday that the world economy was “overcolloding” into what it described as a “crisis of confidence” as the global crexo 카지노dit b보성출장샵 보성출장마사지ubble and debt crisis continued to grow.
It said that as the Fed and the International Monetary Fund tightened monetary policy and lowered interest rates, the world’s economy f제주출장샵aced an economic storm in the summer of 2009 – before the financial collapse and the meltdown of Lehman Brothers was averted.
With the credit bubble overrunning sovereign debt and causing debt burdens to climb beyond the capability of banks to service, the global economy now looks “unstable” because of a lack of economic growth, according to IMF chief Christine Lagarde.
GDP per capita in 2011 was around $1,100 and growth per capita was 3.2 percent.
But as the global economy came apart, and there was not much growth or interest rates fell and banks made too much of the interest the cost of borrowing, there was a significant slowdown in the growth of the global economy.
There was “massive underinvestment in the US and China,” she told the World Economic Forum annual meeting in Davos, Switzerland, where she was the main speaker.
“That’s just not on,” she said, adding: “I just don’t think the world economic crisis is the collapse of the global system but, rather, the structural collapse of a global banking system.”
A big problem for the world economy would be the lack of growth and high unemployment in developed countries – countries like the US and China who have already had a debt crisis, but are now experiencing the same slowdown which has taken place for many countries in Europe.
“The growth prospects and income of all societies would be seriously damaged, and those nations which had the opportunity to re-embrace growth as an attractive way of making money in a highly competitive global economy would be severely and dramatically harmed by that,” Lagarde said.