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2010-09-12 10:19:09
By Iain Mackenzie BBC News, Washington
Growth in the global economy is likely to slow towards the end of 2010, the
International Monetary Fund is warning.
The IMF blames weakness in the financial sector and the crisis of confidence in
some national economies.
It is calling on the most developed countries to cut their budget deficits in
order to tackle the problem.
The IMF briefing note also sets out potential risk factors that could make
things worse, such as a deterioration of the US property market.
Gloomy reading
This is where the global financial crisis began and the IMF warns that the
supply of credit may begin to dry-up if the number of home repossessions there
continues to increase.
It also raises the possibility of more problems in the sovereign debt market,
similar to the crisis of confidence that left Greece requiring a 100bn euro
loan earlier this year.
The IMF briefing note makes gloomy reading.
Among the recommendations made in it is a call for governments to rebalance
their economies, with emerging markets, including those in Asia, encouraged to
focus less on exports and more in stimulating internal demand.
Conversely, the IMF suggests that advanced economies need to increase export
sales while cutting their budget deficits.