Alarmingly High' Risk of Fresh Global Slump: IMF

The International Monetary Fund has slashed its growth forecast for large parts of the world economy and warned of a full-blown global slump if policymakers in Europe or the US mishandle serious threats.

Major take-away:

• The intensity of the euro area crisis has not abated as assumed in previous projections.
•  Risks for recession in the advanced economies are alarmingly high,
•  Italy will shrink by 2.3pc this year and 0.7pc next, pushing the debt ratio to an all-time high of 128pc
•  The IMF expects the US to muddle through with growth of 1.3pc this year and 1.5pc in 2013, but this is uncomfortably close to stall speed.  
• China is expected to avoid a hard-landing and still has some scope to cushion any further shock with fiscal stimulus,

 
Source Telegraph.