SLOW DOWN IN WORLD ECONOMY

An assessment made by the OECD in
September 2010 states:2
Recent high-frequency indicators point to a slowdown in the pace of recovery of the world economy that is somewhat more pronounced than previously anticipated…growth could slow in the G7 economies to an annualised rate of about 1½ per cent in the second half of the year…It is not yet clear whether the loss of momentum in the recovery is temporary… In reality, economic forecasts by the international economic policy establishment in the recent years, particularly those by the IMF, have turned out to be entirely bogus. For instance, the IMF forecast of world GDP growth for 2008 was 4.8% in October 2007, 3.7% in April 2008 and 3.9% in October 2008. It actually turned out to be 2.8% as per IMF’s own estimates, and 1.7% as per the estimate of the World Bank. Similarly, the IMF forecasted 3.7% world GDP growth for
2009 in April 2008 and 3% in October 2008. World GDP growth actually turned out to be negative in 2009, - 0.6% by IMF’s estimate and – 2.1% by World Bank’s estimate.