IMF and the world economic outlook

Owldshtok

RTE Radio 1 news today 'the IMF has revised downward its world economic growth forecast to 3.1%' - presented in a tone like its disappointing news.

Hold on,the world economy is not contracting,and modest,slow steady growth is a good thing.Why would the world economy want the growing pains and pitfalls associated with celtic tiger type growth figures? Specially on a global scale.

Maybe the sub section about bad news on the forecast for the European economy is the reason why the item was presented this way?

Is there a reason why the world in general should be disappointed in 3% growth figures?

Noreen1

Would that not depend on which Countries are forecast to drive this growth?
And whether or not we export to these Countries, given our reliance on exports at the moment?

In addition, if this growth is averaged out, it is entirely possible that it may be as a result of "Celtic Tiger" growth in some economies. It's impossible to say without access to more detailed predictions.

Not to mention whether or not this forecast is likely to be downgraded again in a couple of weeks, when/if the knock-on effects of the downgrade are felt?

Cookie_Monster

Owldshtok wrote: »

Is there a reason why the world in general should be disappointed in 3% growth figures?

Because powerhouses like China, India and Brazil would be helping pull the figure up a lot. You can imply their economies are slowing down if the overall percent is falling. Can you imagine what a recession in China would do to the overall figure given their lopsided contribution to the current growth figure?

gaius c

There's also the fact that Chinese growth figures need to be taken with a pinch of salt. They are currently going through a property bubble bust similar to ours and their banks may be even more crocked than ours are but you'd never know it looking at their rosy reports.

maninasia

The Chinese and Indian economies should grow by minimum 6% a year otherwise they have a problem dealing with their new graduates, affording their social and capital spending, paying back debt etc.