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IMF Set to Cut Its 2012 Global Economic ForecastPosted Friday, January 6th, 2012 at 12:45 pm
With continuing fears about the European debt crisis, the International Monetary Fund says it is set to lower its global economic growth forecast for 2012.
Last September, the IMF projected a 4 percent advance this year. But on Friday IMF chief Christine Lagarde told reporters in the South African capital, Pretoria, that later this month the Washington-based agency would cut its estimate to make it “consistent with reality.”
She said South Africa and other African nations “will clearly suffer setbacks” if Europe does not resolve its governmental debt crisis. She warned of a difficult year ahead for the world economy.
Lagarde said there are serious debt pressures within the 17-nation eurozone, but said the common currency would not disappear in 2012.
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