Worldwide growth to slow April 9th, 2008

The credit crunch will be the cause of a slowdown in worldwide economic growth, a forecast by the International Monetary Fund (IMF) has concluded. Latest figures predict gorwth of 3.7% in both 2008 and 2009, a decrease of 1.25% on 2007 rates.

Not surprisingly the US will lead the charge downwards, which will result in a ‘mild recession’, a phrase that is more optimistic than other commentators have been using.

When the US sneezes the UK catches a cold and thus we don’t escape the downturn. Growth will fall significantly to 1.6%, which is under the 2% forecast put forward by the Treasury.

Whilst the IMF forecast may not tell us anything new, it adds weight to the general consensus on economic performance. The self-fulfilling prophecy of a slowdown will be here before we know it. All you can do is sit tight and wait for us to come out of the other side.