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World

Global recovery 'still at risk'

July 16, 2012 6:46 pm

The global economic recovery is still at risk, and eurozone economies remain in a “precarious” situation, the International Monetary Fund has said.

A delayed or insufficient response from European leaders to the crisis would further derail the recovery, it said.

The IMF downgraded its forecast for global growth for 2013 to 3.9% from the 4.1% prediction it made in April.

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One of the biggest downward revisions was to the UK, now expected to grow by 1.4% in 2013. In April it predicted 2%.

The forecast for growth in 2012 was also reduced for the UK, down to 0.2% from the 0.8% cited in April.

The IMF’s prediction for world output this year – as measured by gross domestic product – was little changed at 3.5%.

In its updated World Economic Outlook, which is published twice each year, the Washington-based lender said: “Downside risks continue to loom large, importantly reflecting risks of delayed or insufficient policy action.”

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