IMF Suggest Economies Could Be Back On Track By 2008

The International Monetary Fund has today envisaged difficulties in growth for economies across the world, as a direct consequence of the unrest in world financial and stock markets.

These comments were made just twenty four hours after the Organisation for Economic Co-operation and Development warned that the US in particular would be hit by an economic slowdown over the remainder of the year, as a result of the sub-prime crisis and ongoing market unrest.

In an announcement made today, the International Monetary Fund declared it would be revising its growth projections downwards for the remainder of the year, with the burden lightening into 2008, as a direct consequence of the fallout from recent market turbulence.

Markets worldwide have been trading very weakly over recent weeks, lacking the conviction of an investor-confident market. As a result of ongoing problems stateside, markets throughout the world have suffered, trading tenderly in the rare moments of positive trade.

Whilst the situation may have faded from the forefront over the last week, the US sub-prime mortgage lending sector, which lends to those with poor credit histories, is continuing to cause problems for investors and mortgage lenders alike.

As a result, credit has become less readily available for business growth and consumer borrowing, which could have a knock-on effect on economic growth and development over the next part of the year.

With markets remaining uncertain as to the extent of sub-prime exposure, growth and private investment are likely to remain stagnant in the tight credit culture that will continue to develop under the current circumstances.

Whilst the IMF predicts slowing for the remainder of this year, it has also suggested that the problems should begin to decline in terms of global stability as we edge in the new year.

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