1. Most Discussed
  2. Gainers & Losers

IMF to cut US growth forecast

  1. G'day people,

    The following article was posted on the ABC a short time ago.


    IMF to cut US growth forecast

    The IMF says it expects to cut its US economic growth forecasts as the plunging stock market raises a new threat to the recovery.

    "While the outlook is still broadly favourable, the downside risks have intensified," the International Monetary Fund said in a report after annual talks with the US economic authorities.

    IMF staff had envisaged real gross domestic product rising from 2.5 per cent in 2002 to about 3.25 per cent in 2003.

    "However, recent data releases and other developments, including the sharp decline in equity prices in recent weeks, have exacerbated the downside risks to the outlook for both personal consumption and business investment," it said.

    "The likelihood, therefore, is that downward revisions to the growth projections would be made in the context of the forthcoming World Economic Outlook (due for release in September)."

    IMF directors say in an accompanying assessment that turbulent financial markets had increased the level of uncertainty surrounding the US economic outlook.


    Robust

    US President George W. Bush insists the basis of the US economy remains robust.

    "I am an optimist about our economy and I should be. The fundamentals are strong. Interest rates are low, monetary policy is sound," Mr Bush said.

    "The foundation for growth is strong in America, and we'll continue to work in more ways to foster economic vitality," he said.

    Mr Bush says he has sought to rebuild battered confidence in companies by signing into law corporate accountability legislation on June 30.

    He says he believes the measure will help the unemployed.

    "If somebody is looking for work and work is not available, we need to do something about it by focusing on job creation," Mr Bush said.

    "Part of that is to make sure there is confidence in the private sector. I was pleased the other day to sign a bill, a corporate responsibility bill, that says, 'If you're in charge of a business, you have the responsibility to your shareholders and your employees to tell the truth, and if you don't, you will be held accountable'."

    Reference: ABC Breaking News


    Regards,

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top

Thank you for visiting HotCopper

We have detected that you are running ad blocking software.


HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.