According to International Monetary Fund (IMF), global economy is at high risk because of European crisis. As estimated by IMF global economic growth would be down by 4% from its previous expectations. It is expected to be 3.25% in the year 2012.
UK’s growth also expected to come down by 0.6% and reach 1.6%. GDP of Europe may down by 0.5% and Europe may face a mild recession. However, previously 1.1% GDP growth was predicted for Europe. Ed Balls, Shadow Chancellor warned the governments to take up prevention measures basing on IMF predictions.
Estimations of growth of almost all countries of Europe, including Germany, were cut down. Initially Germany was expected to have 1.3% growth, but the present predictions say that it would be 0.3% only. France was also expected earlier to have 1.4% growth, but the latest predictions say that it would be only 0.2%. However, IMF said that US would see 1.8% growth on basis of impressive data on manufacturing and jobs.
It is also expected that markets of Eastern Europe, Central Europe and Asia are also likely to hit by European crisis. IMF told Europe should try to rebuild confidence by terminating the crisis. At the same time, IMF said, other world economies should adopt consistent and decisive action policies to improve the economies.