The IMF downgraded growth forecasts for various regions including the US, China and the eurozone.
- IMF sees the eurozone contracting 0.3% compared to 0.2% previously
- US 2013 growth forecast lowered to 1.9% from 2.0% in Jan
- Chinese growth cut to 8.0% from 8.2%
- Other foreacsts lowered include Brazil, UK, Russia and Canada
- Some upside risks but downside risks still predominant
- Biggest risks are crisis fatigue in eurozone, high deficits in US and Japan
- Says ECB has scope to cut rates further, needs ‘aggressive monetary policy’
The US numbers are better than expected. On Friday, Bloomberg published a leaked draft of the report and it forecast 1.7% growth in the US — obviously that was wrong or revised.
