IMF offers bleak assessment of stalled recovery

IMF cuts growth forecast in review of backsliding global recovery, urges farsighted planning

Associated Press
IMF offers bleak assessment of stalled recovery
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Olivier Blanchard, left, chief economist of the International Monetary Fund, speaks during a press briefing on a quarterly update of its World Economic Outlook in Tokyo Tuesday, Oct. 9, 2012. Plagued by uncertainty and fresh setbacks, the world economy has weakened further and will grow more slowly over the next year, the IMF says in its latest forecast. "Low growth and uncertainty in advanced economies are affecting emerging market and developing economies through both trade and financial channels, adding to homegrown weaknesses," Blanchard said in a statement. (AP Photo/Kyodo News) JAPAN OUT, MANDATORY CREDIT, NO LICENSING IN CHINA, FRANCE, HONG KONG, JAPAN AND SOUTH KOREA

TOKYO (AP) -- Plagued by uncertainty and fresh setbacks, the world economy has weakened further and will grow more slowly over the next year, the International Monetary Fund says in its latest forecast.

Advanced economies are risking recession, the international lending organization said Tuesday in a quarterly update of its World Economic Outlook, and the malaise is spreading to more dynamic emerging economies such as China.

The IMF forecasts that the world economy will expand 3.3 percent this year, down from the estimate of 3.5 percent growth it issued in July. Its forecast for growth in 2013 is 3.6 percent, down from 3.9 percent three months ago and 4.1 percent in April.

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