IMF sparked a rally last week, now it is tempering that sentiment.
Sept. 19 (Bloomberg) -- International Monetary Fund Managing Director Rodrigo de Rato said global economic growth may be peaking, prodding policy makers to reach agreement on a new trade deal or risk a deeper slowdown.
The ``global growth cycle may be turning'' lower, de Rato said in a speech before the IMF board of governors meeting today in Singapore. ``The best hope for continued high growth lies in further increases in international trade,'' he said. ``If this does not materialize, prospects are for lower growth.''
The IMF last week projected global output to rise 5.1 percent this year and 4.9 percent in 2007, with both forecasts higher than its April estimates. A shortness of skilled labor is diminishing further expansion prospects, he said.
De Rato also cited barriers to trade, higher energy prices and economic imbalances, such as the record U.S. trade deficit as risks to global growth.
Sept. 19 (Bloomberg) -- International Monetary Fund Managing Director Rodrigo de Rato said global economic growth may be peaking, prodding policy makers to reach agreement on a new trade deal or risk a deeper slowdown.
The ``global growth cycle may be turning'' lower, de Rato said in a speech before the IMF board of governors meeting today in Singapore. ``The best hope for continued high growth lies in further increases in international trade,'' he said. ``If this does not materialize, prospects are for lower growth.''
The IMF last week projected global output to rise 5.1 percent this year and 4.9 percent in 2007, with both forecasts higher than its April estimates. A shortness of skilled labor is diminishing further expansion prospects, he said.
De Rato also cited barriers to trade, higher energy prices and economic imbalances, such as the record U.S. trade deficit as risks to global growth.
This entry was posted
on Monday, September 18, 2006 at 11:48 PM.
