“Despite increasing oil prices, the broad contours of the fund’s assessment of the global outlook remain unchanged at this stage,” IMF spokesman David Hawley told a regular press briefing.
“Significantly higher oil and commodity prices could have a dampening effect on growth if prices remain at elevated levels,” he added.
He said the ability of banks to raise capital was “reassuring” although a protracted adjustment in financial sector balance sheets is still likely.
The Washington-based institution has already twice cut its growth forecast for the world economy this year – in January and again in April. In its last outlook in April, it warned the US was headed for recession this year and put world growth at 3.7% in 2008.
In October, it had looked for growth of 4.8%, a forecast it lowered to 4.1% in January to try to account for the world’s fast-spreading credit turmoil.
Hawley said the IMF would update its forecast again in July. (Reuters)
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