Inflation, slowing US economy could deter global growth: IMF
Singapore: Though the global economy is set for another year of strong growth, the International Monetary Fund warned that rising inflationary pressures and a slowing U.S. economy were growing dangers. In its twice-yearly World Economic Outlook, the IMF lifted its 2006 forecast for global growth to 5.1 per cent from an April forecast of 4.9 per cent and predicted 4.9 per cent growth in 2007 versus a previous projection of 4.7 per cent.

The IMF said there was a one in six chance that global growth could fall to 3.25 per cent or less.

If the forecast in 2006 materialises, it will be the fourth straight year global growth has topped 4 per cent, underpinned by robust emerging economies, especially in China and India.
Back to News Review index page