IMF survey projects global slowdown

Washington -- The International Monetary Fund Tuesday projected global economic growth will slow to 4.1 percent in 2008, down from a 2007 estimate of 4.9 percent.

The World Economic Outlook report said global growth slowed, "markedly in the final quarter of 2007 in the face of significant headwinds from the financial sector, following a stronger than expected third quarter."

The report projects U.S. growth to slow to 1.5 percent in 2008, down from 2.2 percent in 2007. Quarterly predictions, said to be more accurate, also predict a pronounced decline for the United States economy with fourth quarter growth said to decline to 0.8 percent, down from 2.6 percent growth in the fourth quarter of 2007.

IMF called the recent rate cuts by the U.S. Federal Reserve, "appropriate and helpful."

Economic growth projections for the euro zone in 2008 are down to 1.6 percent, from 2.6 percent growth in 2007.

In Japan, tighter building standards and weaker consumer confidence, led to a forecast of 1.5 percent growth, down from 1.9 percent in 2007.

Growth in China is expected decline from 7.8 percent in 2007 to 6.9 percent in 2008. Moderating growth will, "alleviate overheating concerns," said IMFSurvey Magazine.

Copyright 2008 by United Press International.