IMF: World Economic Danger Enters New Phase

Asiana De Sun.Com,WASHINGTON - Get ready for a bigger economic crisis. The International Monetary Fund chief economist, Olivier Blanchard, said the world economy will enter a phase in what he calls a new danger. United States and Europe cited a sharp decline from an economic standpoint at least the end of next year.

IMF predicts U.S. economy will only grow 1.5 percent this year and 1.8 percent next year. This figure is far from the U.S. government's benchmark rate, from 2.5 percent this year and 2.7 percent next year.

"The global economy entered a new dangerous phase. Recovery will take time. The recovery has been weakened. It takes a strong policy to improve the prospects and reduce risk," said Blanchard.

IMF seen worse things in the euro zone countries. A total of 17 countries will show only 1.6 percent growth rate this year and 1.1 next year, down from a June estimate of 2 and 1.7 percent.

Some analysts had predicted the euro zone countries would be trapped in a debt crisis and this has an impact on instability in the region.

"The market is skeptical of the ability of some countries overcome their debt," says Blanchard, "The fear of rising uncertainty," he said.

Overall, the IMF predicts global growth up 4 percent through 2012. Contrary to the U.S. and Europe, some countries is forecast for economic moncer ; he mentioned three countries: China, India, and Brazil.