Next week, the leading economists and global bankers are meeting the officials of the International Monetary Fund (IMF) and the World Bank, in Washington. The fear of sliding economy and a recessive global development program is tensing most business organizations. The falling oil and gold prices are a clear indicator of how the economy will shape up by the end of 2014 and continue into 2015. The USA and India recently renewed their trade and economic cooperation, even as the IMF predictions can actually fortify the newly forged alliance.
The latest announcement made by the International Montery Fund outlines the fact that the global economy is passing through a sluggish phase. It has lowered its prediction linked to the global growth for the reminder of the year 2014, and it fears that the effect is likely to spill over into the next financial year as well. The organization’s update has been published in its magazine, the World Economic Outlook.
Business strategists are baffled at the IMF’s ‘uninspiring’ forecasts that have been derived from the past. Nonetheless, this is a warning that every business group is taking seriously and it is likely that they would tighten their hold on the economic consolidation as well. The IMF justifies its predictions, citing a much weakened global growth are to be blamed for the results. It also enforced the idea that its projections are a product of the past and present developments. The IMF has significantly cut down its September-end global GDP to 3.3 percent from a healthier 3.6 percent during April, 2014. The slide will cascade into 2015 as well, with its projected global GDP reduced from 3.9 percent to 3.8 percent.
The forecasts come just days ahead of the annual meetings scheduled between the IMF and the World Bank to be held in Washington. The officials from the IMF have issued alerts about developments from the past that will tarnish the growth factors in the present as well as in the future.