The International Monetary Fund warned that risks to global growth “loom large” as it cut its forecasts for the year and urged policy makers around the world to act.
In an update to its regular World Economic Outlook, the IMF cut its 2012 growth forecast from 3.6 to 3.5 per cent but warned that its outlook depends on rapid policy action.
“More worrisome than these revisions to the baseline forecast is the increase in downside risks,” said Olivier Blanchard, the IMF’s chief economist. “The global recovery continues, but it is a weak recovery and indeed a bit weaker than we forecast last April.”
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