International Monetary Fund warned Economic Problems

economic problems
economic problems

International Monetary Fund organization warned that the world economy has entered a new and dangerous phase, characterized by declining growth drastically. The continued political and economic problems in the United States and Europe can drag them back into recession.

The warning was delivered by economists and the International Monetary Fund (IMF) when describing a review of global economic projections in Washington DC, September 20, 2011, as quoted by BBC news station.

According to IMF projections, the economy in developed countries experienced a weak phase and bumpy. Level of Gross Domestic Product in developed countries is on average only a 1.5 percent in 2011.

Thus, the world's leading creditor agency believes that global economic growth next year will slow to 4%, down 1% from the previous year. One reason is financial shocks in the euro zone.

Economic growth in 17 countries using the euro this year, it predicted only 1.6 percent, down from 2% as predicted in June. Next year, the International Monetary Fund assessed that euro zone growth of just 1.1 percent, lower than 1.7% as previously predicted.

The United States, as the world's largest economy, was assessed also experienced weak economic growth.