IMF warns about 'damaging cuts'
The head of the International Monetary Fund has urged countries to ease back on cuts because of the impact on growth. It has previously warned the global economic recovery was weakening as government policies have failed to restore confidence.
Latest ITV News reports
IMF: Another forecasting fail?
World governments warned over 'damaging cuts'
The head of the International Monetary Fund has urged countries to ease back on financial cuts because of the impact they are having on growth.
According to the Financial Times (£), Christine Lagarde warned against bringing in too many spending cuts and tax increases at once, saying: "It's sometimes better to have a bit more time."
Mervyn King giving up on the inflation target? Not quite
Sir Mervyn King will concede there might be occasions when the Bank of England should 'aim off' the 2% inflation target.
Read the full storyAdvertisement
IMF: Another forecasting fail?
It is the kind of message we have heard from the IMF before - think about having a Plan B ready, but don't press the button yet.
Read the full storyIMF: Greek to contract by 6%
The IMF has predicted a huge contraction in Greece for this year and for 2013. Predictions for GDP in the Eurozone are -0.4 this year and 0.4 next year, but Greece falls way below this with the worst estimates in the world.
The IMF predictions for Greece:
- –6.9% actual GDP in 2011
- –6.0% 2012 projection
- –4.0% 2013 projection
Labour: 'IMF forecasts a blow to government credibility'
Coming just hours after George Osborne complacently insisted he would cling on to his failing plan, these downgraded IMF forecasts are another damaging blow to the government's economic credibility.
– Labour shadow chancellor Ed BallsTwelve months ago the IMF forecast growth of 1.6 per cent in 2012 and said a plan B would be needed if growth were to be lower than expected. A year on, with Britain in a double-dip recession, borrowing rising as a result and growth forecast to be minus 0.4 per cent, there can be no question that a change of course is urgently needed.
Overview of the IMF's World Economic Outlook projections
An overview of the International Monetary Fund's World Economic Outlook projections, as it downgrades its estimate for global growth for this year to 3.3%.
Advertisement
IMF: UK economy will shrink by 0.4% this year
The International Monetary Fund has slashed its forecast for the UK economy's growth, it predicts it will shrink by 0.4% this year.
In July, growth of 0.2% was forecast for the year.
The IMF also cut its forecast for next year from 1.4% to 1.1%.
IMF downgrades global growth forecast
The International Monetary Fund (IMF) has said that the global economic recovery is weakening as it downgraded its global growth forecast to 3.3%, down from its July estimate of 3.5 %.
The IMF also cut its estimate for global growth in 2013 from to 3.6% from the 3.9% it forecast in July.
In its World Economic Outlook report, the IMF said:
"A key issue is whether the global economy is just hitting another bout of turbulence in what was always expected to be a slow and bumpy recovery or whether the current slowdown has a more lasting component".
"The answer depends on whether European and U.S policymakers deal proactively with their major short-term economic challenges."