Finance

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IMF Feeds Fears of U.S. Recession

April 10, 2008 01:50 PM
by findingDulcinea Staff
The International Monetary Fund predicts the U.S. economy may soon slip into a recession, and the global economy may not be far behind.

30-Second Summary

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The IMF, an international financial surveillance organization based in Washington, D.C., released its World Economic Outlook Wednesday.

The report focuses on the “gloomy prospects” facing the United States owing to “the twin forces of deteriorating financial market conditions and the continuing correction in the U.S. housing market.”

The report also says that the economic slowdown in America will lead to a deceleration of global growth in 2008.

The IMF suggests that there is a 25 percent chance the world economy could fall into a recession this year, defined by growth of 3 percent or less.

The news will not shock some financial analysts, who have been predicting a recession for several months.

Following the release of his annual shareholder letter in March, billionaire investor Warren Buffett said that “by common sense definition” the United States is already in a recession.

The Bush administration, however, has yet to pin that label on the current economic downturn.

Headline Link: IMF predicts U.S., possibly global, recession

Reactions: Darling remains optimistic

Related Topics: Buffett says yes, Bush says no and Bernanke says maybe

Background: What is a recession?

Reference: The World Economic Outlook

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