">Forum Views ()
">Forum Replies ()
Read more with google mobile :
Financial crisis slams global economy to near-halt: IMF
Navigation
Primary Navigation
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Top Stories
Most Popular
Secondary Navigation
Singapore
Asia Pacific
World
Search
Search:
Financial crisis slams global economy to near-halt: IMF
AFP - Thursday, January 29
WASHINGTON (AFP) - - The International Monetary Fund slashed its economic outlook Wednesday, predicting the global financial crisis would slam growth to a virtual standstill this year.
"World growth is projected to fall to 0.5 percent in 2009, its lowest rate since World War II," the IMF said in a sharp 1.75-point downward revision of November forecasts.
"The world economy is facing a deep recession," the 185-nation institution warned.
The advanced economies were expected to contract by 2.0 percent, their first annual contraction in the postwar period and far more than the negative 0.3 percent the IMF estimated less than three months ago.
The financial problems that emerged in August 2007, stemming from a US subprime mortgage crisis, grew into a firestorm in September after the collapse of Wall Street investment bank Lehman Brothers which has hammered growth and trade worldwide.
"Despite wide-ranging policy actions, financial strains remain acute, pulling down the real economy," it said.
Noting a "highly uncertain outlook," the IMF said that "the timing and pace of the recovery depend critically on strong policy actions."
"A sustained economic recovery will not be possible until the financial sector's functionality is restored and credit markets are unclogged."
The United States, the epicenter of the financial crisis, would endure a 1.6 percent contraction in 2009, slashing its prior estimate of 0.9 percent.
The world's biggest economy, nonetheless, would weather the financial storm better than most other major advanced economies.
Japan's economy would shrink by 2.6 percent in 2009 instead of the 0.2 percent seen previously. The world's second-largest economy would be mired in recession for a second consecutive year, after shrinking 0.3 percent in 2008.
The 27-member eurozone economy would hit a wall, suffering a 2.0 percent contraction after growing 1.0 percent in 2008. The previous 2009 estimate was a 0.5 percent contraction.
IMF managing director Dominique Strauss-Kahn called for the European Central Bank to "give more gas" to the eurozone economy by cutting interest rates again, according to an interview with German weekly Die Zeit.
Germany, Europe's biggest economy, would shrink by 2.5 percent this year after a 1.3-percent expansion in 2008, according to IMF figures published six days ago.
Britain, outside the eurozone, would suffer the most, with gross domestic product (GDP) activity contracting 2.8 percent, after 0.7 percent growth last year.
Developing countries were forecast to expand by 3.3 percent in 2009, about half the 6.3-percent expansion of last year.
China would remain the world's fastest-growing economy, putting in a relatively blistering 6.7-percent pace, down from 9.0 percent in 2008.
India's economic growth would slow to 5.1 percent after 7.3 percent.
The IMF held out hope for a gradual economic recovery in 2010, with global growth of 3.0 percent spurred by "continued efforts to ease credit strains as well as expansionary fiscal and monetary policies."
But the institution cautioned that "the uncertainty surrounding the outlook is unusually large."
"Downside risks continue to dominate, as the scale and scope of the current financial crisis have taken the global economy into uncharted waters," it said.
"The main risk is that unless stronger financial strains and uncertainties are forcefully addressed, the pernicious feedback loop between real activity and financial markets will intensify, leading to even more toxic effects on global growth."
In a separate report on global financial stability, the IMF raised its estimate of potential losses in US-originated asset writedowns to 2.2 trillion dollars, up from 1.4 trillion dollars.
"More aggressive actions by both policymakers and market participants are needed to ensure that the necessary deleveraging process is less disorderly," it said, underscoring that international cooperation was key to re-establishing financial stability.
It prescribed a broad three-pronged approach -- including liquidity provision, capital injections, and disposal of problem assets -- "that should be implemented fully and quickly so as to encourage balance sheet cleansing."
On Monday Strauss-Kahn criticized the Group of 20 major industrial and emerging countries for having done "very little" on their pledge in November to fight the global financial turmoil.
Email Story
IM Story
Printable View
Blog This
Recommend this article
Average (1 vote)
Sign in to recommend this article »
Most Recommended Stories »
Related Articles: China's Economy
Taiwanese billionaire to buy ATV stake -paperReuters - 1 hour 1 minute ago
Fed says prepared to buy debt to aid economyReuters - 1 hour 36 minutes ago
Treasurys fall after Fed says low rates will stayAP - 2 hours 37 minutes ago
IMF sees world economy at near standstill in 2009Reuters - Thursday, January 29
Related Articles: Business
Taiwanese billionaire to buy ATV stake -paperReuters - 1 hour 1 minute ago
Santander, Wells Fargo offer hope as banks surgeReuters - 1 hour 2 minutes ago
Starbucks 1Q profit down 69 pct, shuts more storesAP - 1 hour 2 minutes ago
Wall St. jumps on bank-rescue plan; Starbucks hit lateReuters - 1 hour 12 minutes ago
S.Korea to offer Hynix stake to foreigners -paperReuters - 1 hour 12 minutes ago
Enlarge Photo
Financial crisis slams global economy to near-halt: IMF
Related Photos
Slideshow Full Photo Coverage: Business & Economy
Related Full Coverage
China Economy
china economy
All Full Coverage
Most Popular – Business
Viewed
New York state to probe 'billions' in Merrill bonuses
Obama lobbies for $825 bln stimulus to thwart recession
Child matador kills six bulls in Mexico
Divided US House to hand Obama stimulus win
German software giant SAP to cut 3,000 jobs
View Complete List »
Search:
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Top Stories
Most Popular
Other News on Thursday, 29 January 2009
Israel retaliation likely as envoy holds talks
Police and soldiers kick off Iraqi voting
House fails to pass DTV delay bill
'Crisis of values' helped economic downturn: EU's Barroso
Cuba to invite U.N. torture investigator to visit
| International
|
Cuba's Raul Castro on milestone Russia visit
Red ink for New York Times
U.S. Navy searches cargo vessel for Iranian weapons
| International
|
Financial crisis bringing global economy to standstill: IMF
China shuts 1,500 websites in porn crackdown: state media
Boeing to cut 10,000 jobs after loss
Canada govt survives as opposition coalition dies
| International
|
Citing threats, TechCrunch founder taking a break
Obama Afghan strategy to stress non-military role
| International
|
Chavez has slim lead for vote on re-election: poll
| International
|
Over 100 killed in Jan 16 Congo massacre: U.N.
| International
|
Odd planet's extreme global warming: Highs of 2240
Gore urges action on economy, global warming
Davos gathering muted by sobering economic reality
Pakistan's Zardari vows to restore order to Swat
Google begins effort to find Internet blockers
| Technology
|
Smokes now tax-free for foreign diplomats in US
Pakistan army chief vows to restore authority to Swat
House fails to pass digital TV delay bill
| Technology
|
Pakistan vows to restore order in Swat Valley
Football: Japan sink as Australia grind out draw
Obama urges passage of stimulus bill
China detains 81 people in Tibet crackdown
Japan ex-PM on rare Iraq visit
Biden Calls Justice Roberts To Apologize For Joke
Japanese fishing boat captured by Russia: official
Obama Defends Economic Stimulus In Speech After 'Sober' Meeting With Business Leaders
Senate Panel Endorses Attorney General-Designee Eric Holder's Nomination
Al Gore Calls For 'Bold Action' Ahead Of Copenhagen Climate Change Conference
Wiretaps Of Illinois Gov. Rod Blagojevich Publicly Played For The First Time In Impeachment Trial
China sets tough growth target to maintain order: Wen
Wen to defend China's role in battling economic crisis
Satyam boss created complex network to divert cash: minister
New films lighten up recession-weary audiences
| Entertainment
|
Thriller video director sues Jackson for profits
| Entertainment
|
Brad Pitt thrilled by Oscar nominations
| Entertainment
|
Indian author Kunzru says no more sari stories
| Entertainment
|
Brad Pitt "thrilled" by Oscar nominations
Author and Parade columnist James Brady dies at 80
Philadelphia Soul ex-manager sues Bon Jovi, others
Lynyrd Skynyrd keyboardist dies at Florida home
Brad Pitt "thrilled" by Oscar nominations
'Thriller' director sues Michael Jackson
EU extends rules for supporting film industry
Berlin searches traces of Wall 20 years on
'Slumdog Millionaire' gathers speed in India: analysts
Dogs' dinner means big bucks in Mumbai
President Obama Not Amused By VP Biden's Joke About Chief Justice Robert's Oath Flub
FDA Finds Some ADHD Drugs Can Make Children Hallucinate
US envoy urges stronger Gaza truce amid airstrikes
Big turnout as Iraqis vote in first stage of election
Israel strikes in Gaza as Obama envoy holds talks
| International
|
Early voting begins in Iraqi provincial elections
Putin calls economic crisis a 'perfect storm'
Online advertisers hammered by "click fraud" in 2008: report
US House approves massive economic stimulus bill
For Obama, closed doors no match for Twitter
Cuba's Raul Castro on milestone Russia visit
Smart email figures out who should get messages
Canadian government survives budget crisis
| International
|
US-TECH Summary
In setback to Obama, House rejects digital TV switch delay
Google begins effort to find Internet blockers
The Rohingya, a Muslim minority group from Myanmar
AOL to cut 700 jobs: internal memo
| Technology
|
Muslim group flees Myanmar but faces more woe
'Difficult decisions' on Iraq, Afghanistan ahead: Obama
Biden's Munich role: Reinvigorate NATO ties
House Lawmakers Pass Obama's $819 Billion Stimulus Plan
Starbucks Still Losing Money, Will Slash 6,000 Jobs
Wall Street Extends Gains, Financial Surge On Stimulus Hopes
Federal Reserve Leaves Key Interest Rates Unchanged
Taiwanese billionaire to buy ATV stake -paper
S.Korea to offer Hynix stake to foreigners -paper
NZ govt. accounts deep in red in November
New Zealand rates fall to record low, more cuts seen
Final Oscar ballots mailed to voters
| Entertainment
|
NZ slashes 1.5 percent from key interest rate
Zappa family loses court battle in Germany
| Entertainment
|
Financial crisis slams global economy to near-halt: IMF
NBC says Super Bowl ad sales nearly done
| Entertainment
|
And the ballots go to ... 5,810 Oscar voters
Dallas Museum of Art adds contemporary pieces
Lord Lucan's desk to be auctioned in London
Oscars ballots mailed to voters
US-ENTERTAINMENT Summary
Springsteen lightens music for Obama era
Youths rule Internet, but elderly making gains: study
And the ballots go to ... 5,810 Oscar voters
Lara Croft to return to big screen -- without Jolie
Zappa family loses court battle in Germany
Lynyrd Skynyrd pianist Billy Powell dead at 56: band
Cormac McCarthy's former home burns in Knoxville
Bits Of Bones Found In Medieval Walls In Spain
Iraqis vote in al Qaeda's last stronghold
SKorean firm claims advance in dog cloning
France faces 'Black Thursday' strike chaos
Israeli warplane bombs Gaza-Egypt border: army
Iraqis vote in al Qaeda's last stronghold
| International
|
Veteran TV Producer And Director Kim Manners Dies Following Battle With Lung Cancer
Sony Q3 PlayStation 3 sales fall
Obama's envoy calls for strengthening of Gaza truce
Fed keeps intervention options open
Google out to expose Internet traffic chokers
Harassment forces Afghan girls out of school
| International
|
Obama savors stimulus win but fights loom
Cuba to invite U.N. torture investigator to visit
| International
|
Public radio goes hi-tech to raise cash
Afghanistan to hold presidential poll on August 20
| International
|
U.N. convoy carrying Sri Lanka wounded leaves war zone
| International
|
Sony Q3 PlayStation 3 sales fall
Obama Afghan strategy to stress non-military role
| International
|
Australian girl, 4, thrown from bridge
| International
|
Japan executive loses 4 mln dlrs buried in garden
Sri Lanka says it captured key crossroad
Indonesian NGO backs villagers in fight against palm oil
LA Cardinal faces probe over abusive priests: report
CIA Algeria station chief faces sex assault probe
Philippine fireworks factory blast kills 6
Google lets users search for Internet blockers
| Technology
|
UN to visit boat people detained in Thailand
Nintendo cuts Wii sales target, raises DS target
| Technology
|
Bolivia seeks to rebuild strained ties with US
NKorean collapse might require 460,000 US, allied troops: study
Public radio goes hi-tech to raise cash
| Technology
|
CIA Officer For Algeria Under Probe For Alleged Rapes
Japan executes 4 convicted killers
Senate confirms new US intelligence chief
Sony Q3 PlayStation 3 sales fall
| Technology
|
Legislators Stall Passage Of Bill Postponing DTV Transition
International concern mounts for Sri Lanka civilians
US military deaths in Afghanistan region at 571
Postmaster General Seeks 5-Day Mail Delivery Amid Deficit, Low Volume
US military deaths in Iraq war at 4,236
Mississippi Mayor, Wife Indicted For False Katrina Claim
Spielberg, EA play Boom Blox sequel
| Technology
|
Japan's PM takes grilling over economy
New Zealand inmate stroll stopped by pole
Jan 28 Highlights In U.S. Economy
AOL to cut 700 jobs: internal memo
| Technology
|
IT industry joins energy efficiency push
| Technology
|
Shell posts 2.8 bln dlr loss in fourth quarter
Toshiba forecasts loss for year
Sony reports 200 mln dollar Q3 operating loss
South Korea vice fin min sees job market worsening
Seoul shares rise as banks, retail issues gain
Philippine growth slips to 7 year low in 2008
Thai parliament passes 3.35 bln dlr stimulus package
Deadly attacks shed light on Indonesia's human-animal conflicts
S.Korea end-Nov unsold new homes hit record high
SKorea government may sell Hynix stake to foreigners: report
Worst yet to come for SKorea economy: Lee
"X-Files" director, producer Kim Manners dies
Fox plans Gordon Ramsay cook-along
| Entertainment
|
Hollywood studio alliance to deliver online films on demand
X-Files director, producer Kim Manners dies
| Entertainment
|
Analog TV Shutdown On Schedule As Bill Delaying DTV Transition Blocked In House
Spielberg, EA play Boom Blox sequel
| Entertainment
|
N.Y. museums head to trial in rights over Picassos
| Entertainment
|
Vietnam's new wave of writers turns away from war
"X-Files" director, producer Kim Manners dies
Spielberg, EA play "Boom Blox" sequel
Mickey Rourke won't rumble with WWE superstar
Jacko sued by 'Thriller' video director Landis
N.Y. museums head to trial in rights over Picassos
Hollywood studio alliance to deliver online films on demand
OONY cancels remaining performances this season
Lyric Opera to begin season with Voigt as `Tosca'
Sudan accuses Chad of supplying Darfur rebels
Businesses risk $1 trillion losses from data theft: study
Iraq to deny licence to U.S. Blackwater guards
French strike nationwide over economic crisis
| International
|
Nokia unveils three new phone models
Madagascar deaths rise to 44, shops heed strike
| International
|
OPEC warns of further oil cuts: sec gen
Afghan presidential vote delayed to August 20
Nintendo cuts Wii sales target, raises DS target
After Mumbai, India boosts arms modernization
| International
|
Gaza truce under fire as US envoy meets Abbas
Small Israeli parties promote offbeat agendas
Over half of Zimbabweans need food aid: WFP
| International
|
Moderate Islamists seize Somali town from Shabaab
| International
|
Nokia unveils three new phone models
Beijing orders operation costs freeze amid slump
Thailand grants UN access to Myanmar boat people
Filipino rebels want investment for hostages
Afghan presidential poll delayed for poor security
Sony sinks to Q3 loss, Nintendo cuts outlook
| Technology
|
Sri Lanka says it captured key crossroad in north
OPEC warns of further oil cuts: sec gen
India boosts arms modernisation after Mumbai
Businesses risk $1 trillion losses from data theft: study
| Technology
|
DAVOS-BP's Hayward says world needs a carbon price
OPEC says it's ready for more oil production cuts
Nokia unveils three new phone models
| Technology
|
Japan hangs 4 convicted killers
Senate Confirms Former Navy Admiral As Nation's New Spy Chief
Japan's opposition: PM is 'out of touch'
Nearly 2,000 Employees, Visitors To Los Alamos Lab Being Tested For Beryllium Exposure
Massachusetts Plans To Impose New Taxes, Cut More Programs To Close Budget Gap
Japan executes four people: officials
Chicago Homeowners Give In To Price Reductions To Sell Units
Bird discovery shows China's ecological potential
House Republicans Reject Delay In TV Signal Switch
Illinois Gov. Rod Blagojevich To Appear At Impeachment Trial Thursday
Wall Street Executives Still Got Hefty Bonuses In 2008
Most Of Long Island Companies In Survival Mode
FEATURE: Blagojevich's Senate Showdown
Layoffs Loom In California If State Workers Won't Agree To 2-Day Forced Leave
S.Korea puts exchange operator under state control
Nintendo's 9-month profit falls on strong yen
Hyundai Heavy's quarterly profit jumps 67 percent
Sony's quarterly net profit tumbles 95 percent
Bridgestone cuts profit estimate after EU fine
Philippine growth beat expectations in Q4
Digital Switch In U.S. Back To Feb. 17 Schedule After House Rejects 4 Months Shift Postponement
Cheap trip: TV adventurer aims for Super glory
Free online computer games win US fans in dismal economy
Tough times for Japan's hostess clubs
Fox plans Gordon Ramsay cook-along
Saudis Boycott Soccer After Prince Insults Commentators
Article not found
Ford loses $5.9 bln, won't seek US aid
Iraq: Artwork dedicated to shoe thrower
Writer Claims He Created "Hannah Montana" In New Lawsuit
NFL players get shot at a virtual championship
Obama team drafting letter to heal Iran rift: report
| International
|
Afghan presidential vote delayed to August 20
Bon Jovi Sued By Philadelphia Soul's Ex-Manager For Unpaid Wages
Lynyrd Skynyrd Keyboardist Billy Powell Dies Of Apparent Heart Attack
Obama team drafting letter to heal Iran rift
EU anti-terrorism chief: EU, U.S. need time on Guantanamo
| International
|
UN makes $613m appeal for Gaza
Pakistan police say three Indian agents arrested
| International
|
U.N. urges African economies to diversify
| International
|
Sarkozy ex-wife burgled by jewel thieves
| International
|
US-TECH Summary
Sri Lanka forces advance into shrinking rebel area
Philippine town mayor, 2 others killed by gunmen
Police in India charge 10 men with raping nun
Official: New initiative for Iraqi students
Tight security for Islamic gathering in Bangladesh
Iraq scraps licence of US security firm Blackwater
NFL players get shot at a virtual championship
| Technology
|
Pakistan says it arrests 3 alleged Indian agents