The International Monetary Fund (IMF) is poised to reduce its global economic outlook for the fourth time since October.
Speaking in Lisbon Tuesday, Teresa Ter-Minassian, an adviser to IMF Managing Director Dominique Strauss-Kahn, said the Fund now expects the world's gross domestic product to contract by 0.6 percent this year, compared with a January forecast for growth of 0.5 percent.
The eurozone economy was forecast to contract by 3.2 percent in 2009, she said. The US would shrink by 2.6 percent and Japan 5 percent, making it the worst-hit big economy. The IMF in Washington said the figures cited by Ter-Minassian were 'unofficial' and 'out of date'.
Until now, the IMF has only said it will cut its global 2009 growth forecast to 'below zero' after worse-than-expected fourth quarter data. Strauss-Kahn told Reuters last week that advanced economies were moving too slowly in ridding banks of problems assets, which could jeopardize a global recovery in 2010. "The scenario will be worse, but the managing director has already said this" Ter-Minassian said.
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