IMF To Warn US Recession Possible;Global '08 GDP +4.2%-Report
Last Update: 3/20/2008 1:56:30 PM
ROME (Dow Jones)--The International Monetary Fund will warn next month that the
U.S. economy could fall into recession in 2008 due to the financial market
crisis, an Italian news agency said Thursday.
"Indicators for the start of 2008 suggest that the economy remains very weak,
certainly close to a possible recession," the IMF will say in its World Economic
Outlook to be published the week of April 7, according to newswire Ansa.
Although the world's largest economy may tip into recession, the IMF's baseline
scenario is for U.S. economic growth of 1.5% this year, down from a previous
October prediction of 1.9%, Ansa said. Global growth is forecast at 4.2%, down
from a previous forecast of 4.4%.
Economic growth in the euro zone is forecast at 1.6%, compared with an October
prediction of 2.1%, the IMF's outlook will say, according to Ansa. The
Washington-based body will also say that the European Central Bank is right in
keeping interest rates steady for now.
Oil prices, which have risen sharply over the last year, hurting global growth,
should remain around $95 a barrel in 2008 and 2009, according to the IMF.
-By Luca Di Leo, Dow Jones Newswires; +39 06 6782543; luca.dileo@dowjones.com
(END) Dow Jones Newswires
March 20, 2008 13:56 ET (17:56 GMT) |
