The IMF economic report came out today with mixed reviews
The IMF economic report came out today with mixed reviews, emerging countries like China still expanding rapidly as advanced economies like the United States are growing very slowly.
Overall, the IMF kept its forecast for worldwide economic growth unchanged at 4.8%, but lowered its estimates slightly for many of the world's largest developed countries.
Due to weak real estate markets and high unemployment, the IMF cut its forecast for U.S. economic growth to 2.8 % this year, down from the 3% rate it predicted previously. The IMF also lowered forecasts for the United Kingdom and Japan. Advanced economies are expected to grow at a 2.4 % rate in 2011, and 2.6 % in 2012, emerging markets are predicted to grow 6.5 % in the coming years.
The BRIC countries, Brazil, Russia, India and China still remain the leaders of emerging markets, far outpacing growth in the developed world. China's forecast is still around 9.6 %, while India's was lowered slightly to a still-rapid 8.2 %. Russia's growth forecast was increased to 4.8 % and Brazil's unchanged at 4.5 %. Yet out of these countries China and India are massive importers, Russia and Brazil are both commodity rich so it is certianly a mixed bag.
Even while we have the US dollar trading at lows verses various pairs it is not exactly unhealthly for the US, they are almost pulling off a reverse China trade as the Yuan is kept low so as exports are cheap. Could the US be trying to attempt the same to get them out of their economic situation with a weak dollar?
