US in recession, 25-percent chance world follows: IMFApril 9th, 2008 - 10:27 pm ICT by admin
Washington, April 9 (DPA) The US economy is expected to enter recession in 2008 and there is a 25-percent chance the rest of the world will follow the suit, the International Monetary Fund said Wednesday. The world’s largest economy is forecast to grow at 0.5 percent in 2008, but will contract by 0.7 percent on a fourth-quarter-to-fourth-quarter basis, according to the IMF’s semi-annual World Economic Outlook report.
The IMF already confirmed last week, after leaked media reports, that it projects world growth to slow to 3.7 percent in 2008 after growing at a 4.9-percent clip in 2007.
There is a 25-percent chance that 2008 growth will fall below 3 percent, which the IMF rates as a global recession.