IMF predicts US recession

10 April 2008

The ongoing credit crunch among banks will tip the US towards recession, the International Monetary Fund (IMF) has predicted.

According to the organisation, the future national slowdown will also provide significant downwards pressure on global economic growth.

The IMF said that the US would grow by 0.5 per cent in 2008, rising to just 0.6 per cent in 2009.

This marks the slowest pace in the last 17 years, the New York Times reports.

However, the predictions were discounted by David H McCormick at the Treasury Department, who termed them "unduly pessimistic".

He added: "We remain positive about the long-term resilience of the global economy, as well as the long-term resilience of the US economy."

The predictions were contained in the IMF's latest World Economic Outlook report.

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