IMF Downgrades World Growth Prospects for 2003

26 August 2002

World Economic Outlook, the latest report from the International Monetary Fund, predicts a slower rate of growth for the world’s major economies in 2003 than previously envisaged.

German business daily Handelsblatt holds a pirated copy of the report (which is not due for publication until September 25) and on Friday revealed the IMF’s increased “concerns about the tempo and sustainability of recovery”. The concerns are founded on the worldwide plummet in share prices and discouraging economic data emerging from the USA and Japan.

Looking ahead to 2003, the IMF envisages growth of 2.2% in US gross domestic product, down on the 2.6% it previously forecast. In the Eurozone, the current year will see 1.1% growth, better than doubling to 2.5% in 2003. Germany, Europe’s largest economy, will fare less well with growth of 0.7% in 2002, tripling to 2.1% next year.

Although data for the UK and other nations is contained in the report, it was not referred to by Handelsblatt.

Data sourced from: Handelsblatt (Germany); additional content by WARC staff