US Recession Will Slow World Economy: IMF

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. (More IMF stories.)