World Economic outlook - leaked draft of its IMF World Economic Outlook 2012 : The International Monetary Fund's latest forecasts have been leaked, as usual, ahead of official publication next week.
The IMF has slashed its global growth forecast for this year, blaming the eurozone debt crisis. It reckons the world economy will grow by 3.3% rather than 4% as predicted previously. Italy's economy is forecast to shrink by 2.2% and Spain's by 1.7% as tough austerity measures and weak bank lending plunge the countries into at least two years of recession.
"The global recovery is threatened by the growing tensions in the euro area," the Fund said, according to a leaked draft of its World Economic Outlook.
"The most immediate political challenge is to re-establish confidence and put an end to the euro area crisis, supporting growth," said the draft, obtained by the Italian news agency Ansa. The eurozone as a whole will shrink by 0.5% this year, compared with the IMF's last forecast of 1.1% growth in September.
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