The International Monetary Fund trimmed its global growth forecast for the fifth time since early last year due to a slowdown in emerging economies and the woes in recession-struck Europe. In its mid-year health check of the world economy, IMF also warned global growth could slow further if the pull-back from massive monetary stimulus in the United States triggers reversals in capital flows and crimps growth in developing countries.
Standard & Poor's cut Spain's sovereign credit rating to BBB-minus, just above junk territory, citing a deepening economic recession that is limiting the government's policy options to arrest the slide.
The International Monetary Fund is set to cut its forecast for global growth next month when it updates its projections for the world economy, the head of the IMF said.
Spain’s plan to rid banks of toxic real estate assets is reviving the politically heated debate over how creditors and taxpayers should share the vast losses still being incurred by the Euro zone debt crisis. Nowhere is the issue in sharper relief than in Ireland.
The world's leading economies worked to line up a deal in April on a second global rescue package worth nearly 2 trillion dollars to stop the Euro-zone sovereign debt crisis from spreading and putting at risk the tentative recovery.
International Monetary Fund should proceed with talks on increasing the size of its war-chest at the same time as Europe discusses how to build a firewall to contain its debt crisis, a senior official from the fund said on Friday.
Greece faces an exit from Europe's common currency block unless it clinches a deal on a second 130 billion Euro bailout with its international lenders, a government spokesman said on Tuesday.
Britain’s refusal to contribute to the IMF for a Euro zone bailout fund has left the EU short of its 200 billion Euro target. The UK boycott leaves the Euro zone more reliant than ever on major economies such China and on Russia, which are willing to lend more to the IMF.
IMF Managing director Christine Lagarde urged on Monday developing countries to shore up their defences, especially foreign exchange reserves, against a possible European recession next year.
The world economic outlook is quite gloomy and will require action by all countries, starting with those in Europe, to head off an escalating crisis that carries risks of a global depression, the head of the International Monetary Fund said on Thursday.