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Global growth: IMF cuts forecasts

The IMF has again cut its growth forecasts for the world's main economies. The IMF expects the US economy to expand by only 2.2 percent this year, slower than the 2.5 percent it was previously expecting. And next year, the US would grow by just 2.6 percent rather than the 3.25 percent the IMF has been forecasting until now. Boersen-Zeitung said the IMF had substantially scaled back projections for the world's powerhouse economy in the wake of a dramatic slide in share prices, corporate accounting scandals and an uncertain earnings outlook for companies -- all of which were undermining industrial and consumer confidence. The IMF was also cutting its German growth forecast to just 0.7 percent this year, instead of 0.9 percent, and to 2.1 percent in 2003, instead of 2.7 percent. Similarly, French GDP was expected to expand by just 1.3 percent this year and by 2.4 percent next year, slower than the previous forecasts of 1.4 percent and 3.0 percent.
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