The New Nation - Internet Edition

AFP, Paris

The International Monetary Fund has cut its world growth forecasts for this year and next in light of the global slowdown, an official said yesterday. For 2008, the IMF now expects world growth of 3.9 percent, down from the 4.1 percent previous estimate, said the official, close to one of the delegations attending a meeting of G20 developed and developing countries at the weekend. "The IMF gave the figures in a note prepared for the meetingt in Rio (de Janeiro)," the official said. The IMF also downgraded its 2009 forecast to 3.7 percent from 3.9 percent, the official added. The IMF left its 2008 estimate for the United States unchanged at 1.3 percent but reduced the 2009 figure to 0.7 percent from 0.8 percent.

In the eurozone, the economy will likely expand 1.4 percent this year, instead of 1.7 percent, with 2009 down to 0.9 percent from 1.2 percent.

The G20 comprises the seven major economic powers -- the United States, Germany, France, Italy, Japan, Canada and Britain alongside emerging giants such as China, India, Russia, Brazil

and South Africa.