IMF warns of dangers ahead for world economy

21 September 2011

The International Monetary Fund (IMF) has warned of a number of dangers facing the global economy in the years to come.

According to the organisation, the world could be set to face a 'lost decade' thanks to high oil prices, poor growth in the US, the debt problems engulfing Europe and the upset caused by the Japanese tsunami.

In its bi-annual World Economic Outlook report, the IMF estimated global growth is likely to tumble from 4.5 per cent to four per cent, the US will see a reduction of one per cent to 1.5 per cent and the UK is to witness a dip from 1.5 per cent to 1.1 per cent.

The IMF - which has been in operation since the end of the second world war - stated: "The global economy is in a dangerous new phase. Global activity has weakened and become more uneven, confidence has fallen sharply recently and downside risks are growing."

By Gary Cooper

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