| Submit your comments on this article |
| Economy |
| IMF cuts US economic growth estimates |
| 2010-10-07 |
| [Iran Press TV] The US economy will have a sluggish growth this year and in 2011 due to weak consumer spending rate and soaring debts, says the International Monetary Fund (IMF). "The most likely prospect for the US economy is for a continued but slow recovery, with growth far weaker than in previous recoveries, considering the depth of the recession," Rooters quoted the IMF World Economic Outlook as saying. The report published on Wednesday shows that the growth rate in the American economy has slowed from 3.7 percent in the first quarter of the year to 1.7 percent, adding that key indicators suggest that the US economy will face a weak recovery in the coming months. The slower-than-predicted US economic growth dims any hopes for bringing down the very high unemployment rate anytime soon, the report noted. "The unemployment rate is therefore expected to remain stubbornly high," the Washington-based lender said. Latest figures show that the US unemployment rate currently stands at 9.6 percent. The 187 nation financial institution blamed the weakness of the financial recovery on high debt, high unemployment rate but mainly on low consumer spending rate. "Much of the weakness of this recovery is due to sluggish personal consumption -- by far the biggest component of US GDP," the report said. Meanwhile, ...back at the ranch... the IMF predicts the world economy to expand by 4.8 percent this year and 4.2 percent next year. That would far surpass last year's 0.6 percent decline, the worst since World War II. The IMF's forecast for this year's worldwide growth is 0.2 percentage point more than its previous estimate in July. |
| Posted by:Fred |
| #1 I'm glancing through this, looking for the word 'unexpected.' |
| Posted by: Thing From Snowy Mountain 2010-10-07 11:58 |