IMF _ alerted all by reducing Growth target

International Monetary Fund (IMF) has added more pain by announcing its version of Economic Growth outlook.  It has reduced the GDP growth target it set earlier for the World, Developed, Emerging, EU Zone . It has cut the target for all Countries/ Zone

The latest GDP growth projection of IMF is as follows:-

	2012	2013
World	3.5%	3.9%
Advance Economy	1.4%	1.9%
Emerging Economy	5.6%	5.9%
Euro Zone	-0.3%	0.7%
UK	0.2%	1.4%
China	8%	8.5%
India	6.1%	6.5%
Africa	5.4%	5.3%

 

IMF has said that Global outlook could dim further if policymakers in Europe do not act with enough force and speed to quell their region's debt crisis. It has noted that emerging market nations, long time a global bright spot, were now being dragged down by Europe. It has noted that the most immediate risk is still that delayed or insufficient policy action will further escalate the euro area crisis. IMF considers European Central Bank had room to ease policy further and said officials in emerging economies should be prepared to cope with declines in trade and increased volatility in capital flows. IMF has praised crisis-fighting measures adopted by European leaders at a summit in June as "steps in the right direction" but called for more fiscal and banking integration. IMF has insisted for creation of a pan-European deposit insurance guarantee program and a mechanism to resolve failing banks, and call on the ECB to provide ample liquidity to support banks under "sufficiently lenient conditions.