Skip to comments.IMF Lowers Global Growth Forecast … Again (US Credit Default Swap Prices Fall)
Posted on 10/08/2013 7:53:33 AM PDT by whitedog57
The International Monetary Fund Oct. 8 lowered its global growth forecast for this year to 2.9 percent and to 3.6 percent in 2014, from 3.1 percent and 3.8 percent it had in July.
The U.S. economy is at the center of events, the fund said.
The damage to the worlds largest economy from a longer federal government shutdown could be quite harmful while the failure to promptly raise the debt ceiling, leading to a U.S. selective default, could seriously damage the global economy, the IMF warned in its new World Economic Outlook.
Bear in mind that the IMF has had difficulty in its economic forecasts, like missing the GDP growth for the US, Canada, Japan and almost the entire emerging / developing world.
The black line is the latest forecast.
IMF World Growth Oct 2013_1
For the USA, the IMF has downgraded its growth forecast as well.
IMF US Growth Oct 2013_1_0
Missed it by this much!
Here is the latest GDP for Europe. All countries are below 1.50% GDP growth.
But at least credit default swaps (CDS) remain below 66 for the non PIGS (Portugal, Italy, Greece, Spain and Ireland).
Even the US CDS is down today.
Despite the fear mongering about a US default in the media, the market seems to be pricing default risk as being lower today.
Maybe relying on an economy that is approaching $95 TRILLION in unfunded liabilities is not the way to go, you imbeciles. The USA has racked up more debt that the entire world can ever pay. How do you think that can be fixed?
Still no unemployment figures for September?