IMF says growth will slow in coming months
There are concerns over some national economies and the the United States property market Growth in the global economy is likely to slow towards the end of 2010, the International Monetary Fund is warning.
The IMF blames weakness in the financial sector and the crisis of confidence in some national economies.
It is calling on the most developed countries to cut their budget deficits in order to tackle the problem.
The IMF briefing note also sets out potential risk factors that could make things worse, such as a deterioration of the US property market.
Gloomy reading
This is where the global financial crisis began and the IMF warns that the supply of credit may begin to dry-up if the number of home repossessions there continues to increase.
It also raises the possibility of more problems in the sovereign debt market, similar to the crisis of confidence that left Greece requiring a 100bn euro loan earlier this year.
The IMF briefing note makes gloomy reading.
Among the recommendations made in it is a call for governments to rebalance their economies, with emerging markets, including those in Asia, encouraged to focus less on exports and more in stimulating internal demand.
Conversely, the IMF suggests that advanced economies need to increase export sales while cutting their budget deficits.
September 11, 2010
KUALA LUMPUR, Sept 11 — The country is poised to grow by at least six per cent this year fuelled mainly by domestic demand, Prime Minister Datuk Seri Najib Razak said.Najib said this in an interview with CNBC Asia’s Martin Soong aired today.
He also said that the government was open to the idea of making the ringgit, which recently touched a 13-year high, tradeable offshore again. — Bernama
Ahh...looks like Malaysia is following the recommendations set out by IMF - to focus more in stimulating domestic demand. A step in the right direction, I guess. No wonder Malaysia will hit 6%!
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