Oil, food prices could further dampen growth
The International Monetary Fund said it was maintaining its outlook for the world economy for now, but cautioned that higher prices for oil and food could further dampen growth.
“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)
ADVERTISEMENT
ÁKK Cutting Premiums on PMÁP
Parl't Approves Amendments to Legislation on Judiciary
Magnus Aircraft Signs CNY 65 mln Order
Accommodation Fully Booked Over Pentecost Weekend
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
