IMF Sees Global Economy Shrinking

World economy is growing, but recovery will be slow

(NEWSER) - The global recession is over, the International Monetary Fund said today, revising its economic forecasts in response to Asian growth and more than $2 trillion in stimulus packages worldwide. The IMF now says the world economy is growing and will expand by 3.1% in 2010, with China growing at a 9% clip and the US at 1.5%. Nevertheless, the institution warned that growth will be "sluggish, credit-constrained and, for quite some time, jobless." More»

Recession left 'gaping wounds' says IMF head

(NEWSER) - To those who think the worst of the recession is over, the head of the IMF has this to say: "We are not safe." An astounding 30 million jobs have been lost since the beginning of the financial crisis , three-quarters of those in richer economies, a new report shows. This "wasteland of unemployment," now at 210 million worldwide, puts both the United States and Europe at serious risk of a social revolt, says the IMF's Dominique Strauss-Kahn . More»

'Peer review' system will let nations assess each other's policies

(NEWSER) - The G20 is on the brink of a deal this morning that will require members to "peer review" one another's economic policies—a substantial shift that will expose the US and China to wider scrutiny from less wealthy countries. The new top table for international negotiation wants less American borrowing, more Chinese consumption, and more European investment. But while the IMF will assess whether those plans are working, the G20 won't introduce any enforcement mechanisms, such as sanctions, reports the Wall Street Journal. More»

EU policy blunders likely to result in longer slowdown for rest of world

(NEWSER) - The European economy will sink deepest out of all global economies, bounce back slowest—and delay recovery for the rest of the world to boot, according to the IMF's latest forecast. The agency predicts the EU's economy—at $18 trillion, nearly a third of the world's total—will shrink 4% this year and contribute to a longer slowdown in the US and Asia, reports the Wall Street Journal. More»

(NEWSER) - President Obama touted the resolutions of the G20 summit today in London, saying swift and muscular action was needed to reverse the global economic downturn, the AP reports. Steps like the injection of funds into the IMF and the creation of a global regulatory body “were necessary,” he told a packed press conference. “Whether they were sufficient, we’ve got to wait and see.” More»