Global recession a 25% chance - IMF

In its latest World Economic Outlook, the IMF says world growth will slow to 3.7% in 2008, 0.5% down on its January estimate. Yesterday the IMF suggested the cost of the US sub-prime created credit crunch could top $1trn. It also predicts the US will slip into a mild recession this year, with a modest recovery coming in 2009. “World growth would achieve little pickup in 2009, and there is a 25% chance that the global economy will record 3% or less growth in 2008 and 2009, equivalent to a global recession,” the IMF says. “The advanced economies face the pressing policy challenges of addr...