ID :
43116
Thu, 01/29/2009 - 17:15
Auther :
Shortlink :
http://m.oananews.org//node/43116
The shortlink copeid
Japan Economy Seen to Contract 2.6 Pct in 2009: IMF
Washington, Jan. 28 (Jiji Press)--The International Monetary Fund said Wednesday that it now expects Japan's gross domestic product to shrink
a real 2.6 pct in 2009 in line with the deepening global economic downturn.
The estimated contraction is far bigger than a 0.2 pct fall
projected by the institution in November last year.
In the updated version of its World Economic Outlook report, the
IMF said that U.S. GDP is now expected to drop 1.6 pct next year, bigger
than the November estimate of a 0.7 pct decline.
Euro-area GDP is estimated to drop 2.0 pct, steeper than the
previously forecast fall of 0.5 pct.
The IMF said it now expects global GDP to rise 0.5 pct in 2009, the
lowest growth in the postwar period and down from a 2.2 pct increase
forecast in November.
Despite wide-ranging policy measures taken by many countries,
"financial strains remain acute, pulling down the real economy," the IMF
said in the report.
The IMF also lowered its GDP growth estimates for emerging
economies that had underpinned the global economy. The growth projection was
cut to 6.7 pct from 8.5 pct for China, and to 5.1 pct from 6.3 pct for
India.
The global economy is projected to start recovering and post 3.0
pct growth in 2010, thanks to "continued efforts to ease credit strains as
well as expansionary fiscal and monetary policies," the IMF said.
For 2010, the IMF expects Japan's GDP to grow 0.6 pct and U.S. GDP
to expand 1.6 pct.
Still, the IMF warned the main risk is that "unless stronger
financial strains and uncertainties are forcefully addressed, the pernicious
feedback loop between real activity and financial markets will intensify,
leading to even more toxic effects on global growth."
The IMF also pointed out that the risks of deflation "are rising in
a number of advanced economies," adding that the corporate sectors of
emerging economies could be badly damaged by continued limited access to
external financing.
On top of financial stabilization measures such as public fund
injections into troubled banks, "monetary and fiscal policies need to become
even more supportive of aggregate demand and sustain this stance over the
foreseeable future," the IMF said.
a real 2.6 pct in 2009 in line with the deepening global economic downturn.
The estimated contraction is far bigger than a 0.2 pct fall
projected by the institution in November last year.
In the updated version of its World Economic Outlook report, the
IMF said that U.S. GDP is now expected to drop 1.6 pct next year, bigger
than the November estimate of a 0.7 pct decline.
Euro-area GDP is estimated to drop 2.0 pct, steeper than the
previously forecast fall of 0.5 pct.
The IMF said it now expects global GDP to rise 0.5 pct in 2009, the
lowest growth in the postwar period and down from a 2.2 pct increase
forecast in November.
Despite wide-ranging policy measures taken by many countries,
"financial strains remain acute, pulling down the real economy," the IMF
said in the report.
The IMF also lowered its GDP growth estimates for emerging
economies that had underpinned the global economy. The growth projection was
cut to 6.7 pct from 8.5 pct for China, and to 5.1 pct from 6.3 pct for
India.
The global economy is projected to start recovering and post 3.0
pct growth in 2010, thanks to "continued efforts to ease credit strains as
well as expansionary fiscal and monetary policies," the IMF said.
For 2010, the IMF expects Japan's GDP to grow 0.6 pct and U.S. GDP
to expand 1.6 pct.
Still, the IMF warned the main risk is that "unless stronger
financial strains and uncertainties are forcefully addressed, the pernicious
feedback loop between real activity and financial markets will intensify,
leading to even more toxic effects on global growth."
The IMF also pointed out that the risks of deflation "are rising in
a number of advanced economies," adding that the corporate sectors of
emerging economies could be badly damaged by continued limited access to
external financing.
On top of financial stabilization measures such as public fund
injections into troubled banks, "monetary and fiscal policies need to become
even more supportive of aggregate demand and sustain this stance over the
foreseeable future," the IMF said.
