The IMF just released its World Economic Outlook in preparation for the fall meeting.

  • Global growth now seen 4.0% from 4.3%
  • US and Euro zone could fall into recession
  • Advanced economies GDP seen 1.6% from 2.2% this year
  • ECB should cut rates if risks grow; Fed should stand ready to ease further
  • US GDP cut to 1.5% in 2011 from 2.5% forecast in June
  • Euro area cut to 1.6% from 2.0%

Germany is already pushing back, saying ti wouldn’t do stimulus and will continue budget consolidation.