IMF- Economy

WASHINGTON - The International Monetary Fund on Wednesday cut its growth forecast for China's economy this year to 6.5 per cent, but said signs of recovery had emerged in the world's most populous nation. The IMF's 2009 forecast, made in its bi-annual World Economic Outlook report, was down slightly from its January prediction of 6.7 per cent. But the growth rate is "still a strong performance given the global context," it said. "Also, there were some signs of a turnaround in economic activity in China in the first quarter of 2009." The global economy is projected to shrink by 1.3 per cent in 2009 due to the financial crisis, with the demand collapse in advanced economies and worsening global financial conditions dealing Asian nations a heavy blow, it said.
The IMF predicts China's growth to pick up to 7.5 per cent in 2010.


The IMF unveiled a darker outlook for the US economy Wednesday than just three months earlier, forecasting a deeper recession (-2.8%) in 2009 and no growth at all in 2010. US GDP fell at an annualized pace of 6.3% IN 4th quarter of 2008 and will be dropped in 1st quarter of 2009, while unemployment rate dropped to 8.5% in March.

source:www.channelnewsasia.com