Risks of worldwide recession heightened, says Fund
Europe is an “epicentre of danger” for the global economy, according to the International Monetary Fund. Cutting its forecast of global growth for this year from four per cent to 3.3 per cent, the IMF said the whole world could risk going into recession if the European economic crisis intensifies. The IMF’s World Economic Outlook report states that “the near-term outlook has noticeably deteriorated” for the world. The euro area is blamed for some of the gloom. If IMF predictions are correct, 2012 will mark a reverse from the previous two years. Overall, the world economy grew by 3.8 percent in 2011 and by 5.2 percent in 2010.