The International Monetary Fund projects slow global growth as the euro zone’s situation worsens and other economies remain threatened. It states that the world economy will grow a total of 3.3% this year. This is the slowest since the recession in 2009.
“A key issue is whether the global economy is just hitting another bout of turbulence in what was always expected to be a slow and bumpy recovery or whether the current slowdown has a more lasting component,” the IMF said in the World Economic Outlook Report. “The answer depends on whether European and U.S. policy makers deal proactively with their major short-term economic challenges.”
Though the IMF works to encourage confidence and security, economies across the globe remain uncertain as the European crisis deepens.
This week, the 188 members of the IMF are meeting in Tokyo.
The IMF added: “Confidence in the global financial system remains exceptionally fragile. Banking lending has remained sluggish across advanced economies.”
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