The outlook for global growth in 2009 took a pessimistic tone on Tuesday as the International Monetary Fund released a staff report forecasting a "major downturn" in the global economy in 2009. The report was prepared for the Oct. 10 meeting of finance ministers and central banker from G7 nations.
"The global economy is entering a major downturn," the IMF said in the report. The report forecasts global GDP to slow to 3% growth in 2009, while the U.S. GDP growth is expected to expand 0.1% next year.
The report expects Japanese GDP growth to increase 0.7% in 2008 and then slow to 0.5% growth in 2009.
The IMF predicts that the UK will have the steepest reduction in growth with 0.1% forecast for 2009, down significantly from the 1.6% forecast six months ago.
Canada is expected to be the fastest growing GDP of all G7 countries, with GDP expected at 1.2% after a 2% outlook six months ago.
By Steve Stecyk and edited by Stephen Huebl
©CEP News Ltd. 2008