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July 24, 2008 8:24:22 AM CDT

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US Recession Will Slow World Economy: IMF

Posted Apr 9, 08 5:51 PM CDT in Business 

(Newser) – The International Monetary Fund says world economic growth will slow drastically in the next two years. In its new report, the IMF states that the world downturn will be led by the US, which will slip into a "mild recession" this year, the BBC notes. The report calls the current crisis "the largest financial shock since the Great Depression."

The IMF now predicts worldwide growth will slow to 3.7% in 2008-09. Still, the organization says things might be even worse, putting at 25% chances of a "global recession" if growth dips below 3%. "The greatest risk comes from the still-unfolding events in financial markets," the report says.

Source BBC

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Employment Postings   (Archive Photos)
Head of International Monetary Fund, IMF, Dominique Strauss-Kahn gestures as he leaves the Elysee Palace, in Paris, after a meeting with French President Nicolas Sarkozy, Monday, Jan. 21, 2008.   (AP Photo/Christophe Ena)
IMF Director Dominique Strauss-Kahn.   (Getty Images)
ILO Director General, Chilean Juan Somavia, speaks during the 96th International Labor Organization Assembly at the European headquarters of the United Nations in Geneva, Switzerland.   (AP Photo/Keystone, Sandro Campardo)
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