IMF says advanced economies to “contract sharply”

Currencies, Economic growth, Financial Events

IMF right.jpg

The IMF and World Bank continue to play leap-frog in reducing their global growth forecasts.

In January, the IMF forecast growth would come to a “virtual standstill”. Then, two weeks ago, the World Bank said the economy would “shrink” for the first time since World War 2.

Today, the IMF joins the Bank in suggesting growth will contract by 0.5% – 1% in 2009. It has also cut its regional forecasts very sharply:

USA growth will be -2.6%, down from -1.5%
Euro area growth will be -3.2%, down from -2%
Japanese growth will be -5.8%, down from -2.6%
Emerging economy growth will be just 1.5%-2.5%, versus 5% plus

The Fund pessimistically now expects the world’s advanced economies to “contract sharply in 2009”. It adds that: “Turning around global growth will depend critically on more concerted policy actions to stabilize financial conditions as well as sustained strong policy support to bolster demand.”

PREVIOUS POST

Anger replaces Denial, as financial crisis evolves

18/03/2009

Human beings go through a number of stages when confronted by major change. As f...

Learn more
NEXT POST

Benzene on the floor

22/03/2009

Benzene is one of the most widely used, and widely traded, chemicals. It is ther...

Learn more
More posts
An Evergrande default could reset the Chinese, and global, economy
19/09/2021

China’s economy has been ‘subprime on steroids’ since the financial crisis in 2008...

Read
Housing markets face long-term downturn as central banks abandon stimulus
05/09/2021

Last month saw the beginning of the end for the central banks’ 20-year experiment with stimulu...

Read
Businesses set for transformation as supply chain chaos combines with Net Zero targets
15/08/2021

‘Business as usual’ seems a most unlikely outcome as we look forward over the next 6 months....

Read
Auto industry provides a model for the transition to Net Zero
25/07/2021

Flooding in China and Europe, record temperatures in the USA, wild fires – all these are signs...

Read
Europe’s Green Deal will transform its economy, as floods confirm urgency of tackling climate change
18/07/2021

The floods raging in Germany and Benelux highlight the scale of the Climate Change challenge ahead.Â...

Read
Governments continue to fail the Covid challenge
04/07/2021

Governments have failed to properly protect their populations from the pandemic. Some have actively ...

Read
The blog’s 14th birthday – and the New Normal world it predicted has arrived
27/06/2021

The blog has now been running for 14 years since the first post was written from Thailand at the end...

Read
“When all the experts and forecasts agree — something else is going to happen”, Bob Farrell
20/06/2021

In January, “everyone knew” that inflation was about to take off, and that the US$ was g...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more