Economy, Imf | featured news

The International Monetary Fund on Tuesday shaved projections for global economic growth for this year and next to take into account sharp government spending cuts in the United States and the latest struggles of recession-stricken Europe.

The fund said that growth is hardly expected to snap back to pre-crisis levels of 4.5 to 5.5 percent in the coming years.

The International Monetary Fund, at the urging of the United States, shaped recent research to pressure China over its economic policies, according to a study released Wednesday by the fund’s in-house watchdog.

The question is whether that’s 10 years from now, or 10 years from 2008, which means we have six more years until the world economy truly recovers from the 2008 housing and derivatives bubble that first exploded in the Manhattan offices of Bear Stearns and Lehman Brothers. That’s the view of International Monetary Fund chief economist Oliver Blanchard.

The International Monetary Fund lowered its estimates for economic growth for 2012 and 2013, and urged policy makers to do more to help the housing sector in the United States.

The global economy has stepped back from the brink of danger and signs of stabilization are emerging from the euro zone and the United States, but high debt levels in developed markets and rising oil prices are key risks ahead, the IMF said on Sunday.

President Obama and the G-20 could not agree on how to add resources to the International Monetary Fund so that it can help with the European debt crisis. G-20 members did say that the IMF should have more tools and money, but decisions on exactly how to do that were put off until next year.

The International Monetary Fund is sharply downgrading its outlook for the U.S. economy through 2012 because of weak growth and concern that Europe won't be able to solve its debt crisis.

Policymakers in advanced economies should use all available tools to boost growth, International Monetary Fund Managing Director Christine Lagarde said on Friday, calling for bold action to weather a "dangerous new phase" of recovery.

International Monetary Fund Managing Director Christine Lagarde said on Wednesday the global economy was rebounding from the financial crisis but recovery remains unbalanced.