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IMF Downgrades Global Growth for 2013

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By Jon C. Ogg Published
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The International Monetary Fund (or the IMF) issues guidance on global and country-specific economic expectations from time to time, but we now have the IMF’s 2013 World Economic Outlook for the globe and for regions.

The big issue this morning is that the IMF is lowering some growth forecasts, even on the heels of what has been a major market rally since the first of the year. Today’s downgrade represents a slight global growth target reduction based on a protracted recession in Europe.

The euro area is now expected to contract by -0.2% rather than what was previously expected to be only marginal growth (recovery) of 0.2%, projected back in October for 2013. U.S. growth has been downgraded marginally to 2.0% for 2013. A caveat is that downside risks remain, based on new setbacks in the euro area and risks of financial consolidation in the United States. The IMF said that policy actions must address these risks. Elsewhere:

  • Emerging market growth in 2013 has been trimmed by 0.1% to 5.5%
  • Latin American growth is put at 3.6% for 2013.
  • Canada’s growth expectations were trimmed marginally to 1.8% for 2013.
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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.

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