IMF: Global growth to decline in 2012

18 April 2012

The global economic outlook has improved slightly but growth among the majority of developed countries will remain weak, a new report has stated.

According to research published yesterday (17 April) by the International Monetary Fund (IMF), the ongoing risk of the eurozone crisis gathering pace once again is casting a cloud over the rest of the world's prospects.

Within its April World Economic Outlook, the body predicted that overall global growth will decline to around 3.5 per cent in 2012 from almost four per cent last year, before then rising to 4.1 per cent in 2013.

The IMF noted that the US will see improved expansion of 2.1 per cent this year against 1.7 per cent in 2011 and this will help offset the predicted dips across much of the eurozone.

Olivier Blanchard - chief economist at the IMF and professor of economics at the Massachusetts Institute of Technology - commented: "Our baseline is that growth is going to be slow in advanced economies - sustained, but not great."

By Asim Shah

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