In its latest forecast, the IMF said the slowing U.S. economy will act as a drag to world-wide growth. That means, in essence, that the problems caused by the U.S. housing slump and meltdown in the market for subprime mortgages are radiating globally.
Look who’s a drag on global growth:
"World economic growth will slow significantly in 2008 but the U.S., whose housing downturn is rattling global financial markets, will avoid recession, the International Monetary Fund forecast Tuesday.
The IMF sees world economic growth slowing to 4.1% this year, down from 4.9% in 2007. U.S. economic growth will slow to 1.5% in 2008, Johnson said, down from an estimated growth rate of 2.2% in 2007. The 2008 projection is lower than the IMF’s October 2007 prediction of 1.9%."
However, according to the IMF, there will be "no recession in the US" and "no major slow down worldwide."
Sold to you . . .
IMF Forecasts Global Slowdown As U.S. Provides Primary Drag
January 29, 2008 1:43 p.m.
IMF Sees Slowing World Economy in 2008
CHRISTOPHER S. RUGABER
Associated Press, Tuesday, January 29, 2008; 1:46 PM