IMF predicts gloomy global economy

The International Monetary Fund (IMF) predicted Tuesday in a gloomy update of global conditions that the world economy is slowing sharply, and the euro region headed for recession this year.

In 2012 the world economy is expected to expand 3.25 percent, down from the 4 percent projected by the IMF in the fall.

That figure includes 8.2 percent growth in China, the world’s fastest expanding economy, and 7 percent in India. U.S. Growth is forecast at 1.8 percent, the same as the fund projected in the fall.

For the rest of the world, the IMF said growth was being crimped by what remains the world’s major economic risk, the ongoing financial crisis in the euro zone.

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