IMF: Summary of September 2011 WEO
Overview:
The IMF has released its latest World Economic Outlook (WEO) ahead of its Annual Meetings. The WEO paints a fairly gloomy picture of a global economy which is growing more weakly and more unevenly than had been predicted. Moreover, the downside risks to this negative forecast have risen due to policy paralysis in both Europe and America. This has led to a sharp fall in confidence and financial market turbulence that contribute to the worsening outlook. In these circumstances, and with the transfer of growth from the public sector to the private sector proving more difficult than had been hoped, the removal of loose monetary policy in developed countries should be slowed. If the downside risks materialise, those countries that have room should also back-load fiscal adjustment programs.