IMF Economic and Fiscal Updates – July 2012

(CC) Mike Licht/FlickrThe IMF has just released three reports, the latest World Economic Outlook (WEO), “New Setbacks, Further Policy Action Needed;” the update to the Global Financial Stability Report (GFSR), “Intense Financial Risks: Time for Action;” and the Fiscal Monitor, “Nurturing Credibility While Managing Risks to Growth.”

According to the WEO, an already sluggish global recovery shows signs of further weakness, mainly because of continuing financial problems in Europe and slower-than-expected growth in emerging economies. The Outlook projects that the global economy will grow 3.5 percent this year, down 0.1 percentage points from the April forecast, and 3.9 percent in 2013, 0.2 percentage points lower.

The update of the GFSR said that risks to financial stability increased in the second quarter of 2012 due to the continued slow global recovery and fears about the quality of bank assets in Europe.

According to the IMF’s Fiscal Monitor, fiscal adjustment in both advanced and emerging economies is proceeding as expected.

Access World Economic Outlook here.

Access Global Financial Stability Report here.

Access Fiscal Monitor here.