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IMF Lowers Global Growth Forecast Again (US Credit Default Swap Prices Fall)
Confounded Interest ^ | 10/08/2013 | Anthony B. Sanders

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 world’s 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.

imffore

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.

eurocrismon

But at least credit default swaps (CDS) remain below 66 for the non PIGS (Portugal, Italy, Greece, Spain and … Ireland).

cdsw3

Even the US CDS is down today.

uscds1008131

Despite the fear mongering about a US default in the media, the market seems to be pricing default risk as being lower today.

get-smart


TOPICS: Business/Economy; Government; Politics
KEYWORDS: default; europe; imf; obama
Europe is so screwed. This means more central bank intervention.
1 posted on 10/08/2013 7:53:33 AM PDT by whitedog57
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To: whitedog57

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?


2 posted on 10/08/2013 7:57:52 AM PDT by txrefugee
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To: whitedog57

Still no unemployment figures for September?


3 posted on 10/08/2013 8:56:20 AM PDT by nikos1121 (“To err is human; to forgive, divine.” Alexander Pope (1688-1744) English poet)
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