The IMF said the global credit crunch could threaten sustained economic growth

The IMF said the global credit crunch could threaten sustained economic growth


WASHINGTON - October 10 (Xinhua Liu Hongcai) International Monetary Fund (IMF) on the 10th, the United States due to secondary mortgage market crisis triggered by the credit crunch and financial market turmoil on the global economy could pose a threat to sustained growth.

The IMF published the same day in the "World Economic Outlook" Interpretation of the report, global financial markets are now subject to the United States on the impact of loan problems, "a wider range of economic cooling will not be able to rule out the possibility." "World Economic Outlook" report is expected to be announced in mid-October.

For the United States and other countries to lower the interest rate on loans to cope with the crisis, the IMF warned that some of the major industrialized countries although the rate has been restored to the "neutral" level, but still insufficient liquidity test of the ability of the current economic growth.

IMF chief economist Simon Johnson the same day at a press conference that the United States loan crisis triggered by the credit crunch and the global financial turmoil that all financial institutions interaction is becoming more complex. He also said that the IMF is still closely watching the development of financial turbulence, and a certain time in the future should provide recommendations to countries.

Outgoing IMF Managing Director Rodrigo Rato, in a recent British "Financial Times" interview, said that the current global financial turmoil is not "the storm in a teacup", the international community may need a few months or even until next year to enable the financial sector restored to normal levels.

According to industry sources, published in the forthcoming "World Economic Outlook" report, the IMF will reduce global and major economic powers next year's economic growth forecast, global economic growth expected to be reduced from 5.2% to 4.8%, from the United States 2 .8% to 1.9%, the euro zone from 2.5% to 2.1%, from 10.5% in China reduced to 10.0%.