IMF Cuts Global Growth, Sees 2013 European Recession

Tyler Durden's picture

As with every piece of potentially bad news in the here and now, the IMF provides some bone for bulls to gnaw on by offering hope that 2014 will be considerably better. What at first glance is a broad-based slashing of global growth outlooks for 2013 ends up being yet another hockey-stick expectation dangled out in front of the world's investors. With Europe now downgraded to a recession in 2013 (GDP -0.2%), we should not fear though as Olivier Blanchard adds that "If crisis risks do not materialize and financial conditions continue to improve, global growth could be stronger than projected," and sure enough 2014 is expected to herald a new era of growthiness (GDP +1.0%) for the troubled region. He does offer one note of reality that is critical - "Financial market optimism should not lead to policy complacency" - alas we fear that time has long gone. World Trade Volume expectations have been ratcheted lower with Brazil and Newly Industrialized Asia seeing the biggest downgrades to growth.

Have no fear for what is weak in 2013 will come surging back in 2014...


And the amazingly sub-titled IMF report is below - while downgrading the world they offer hope of 'gradual upturn' - as long as all the possible bad things don't happen... wow...


IMF Global Outlook by

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Confundido's picture

And we haven't even defined "growth"....

GetZeeGold's picture



Growth has been outlawed.


We could fix it like we fixed the 1920's depression.....but we're way to bloated to attempt that.

Say What Again's picture


There is NOTHING - absolutely NOTHING - that can cause this "market" to sell off

Groundhog Day's picture

call in the VIX short early to ignore this news

brewing's picture

man, i drank too much last night...

michael_engineer's picture

Outlawed by the laws of nature.

Sudden Debt's picture

Whatever, now we got that one out of the way, it's already calculated into the stock and we can proceed.


Lost Wages's picture

I think in this case they mean "growth" like a tumor.

G_T_A_44's picture

Numerous eurozone nations find themselves in depression at present. The 'brushfire's' will continue to spread throughout to UK, as well as blowing across the Atlantic that will render 2008-09 merely the appetizer/spark.


Global hyperinflationary depression is the destiny.

Silverhog's picture

I think everyone should run their household debt to the limit and beyond in a show of solidarity with the Feds. Buy whatever your heart desires, we too can say Ceiling Cap? We don't need no stinking Ceiling Cap. Get rid of that barbarous relic.

bnbdnb's picture

My plan....

Own everything in my possession amassing absolutely zero debt. Amass hundreds of thousands in credit card access. Turn 60. Spend like a motherfucker.



Its_the_economy_stupid's picture

Consider Foreign Man relocation instead of death. Let 'em find you.

bnbdnb's picture

I've considered that too. RV it.

Dr. Engali's picture

Declare bankruptcy first, or all of that will come back on your estate.

bnbdnb's picture

I plan on giving it to my kids before I die.

Lost Wages's picture

The only problem with plans like this is you have to hope you LIVE until 60 to enjoy your fraud.

bnbdnb's picture

If not so be it. I won't care, I'll be dead. :)

bnbdnb's picture

Bullish for leverage.

EscapeKey's picture

I read that as "bullish for cleavage". I like my version better.

EscapeKey's picture

...and the markets, collectively, go "What? Me worry?"

Smegley Wanxalot's picture

Global Doubledeepindebt Penetration will increase in 2013.

orangegeek's picture

Europe is shrinking, by the US remains untouched at 2% growth.  Fascinating.


Primary wave 3 down to follow on the SP500 - likely before a new historical high.

walküre's picture

The US is completely isolated and unimpressed by any challenges elsewhere in the world but the rest of the world is suffering when the US admits it has a problem. As long as the US can keep their illusion of wealth and growth, the show goes on.

Tell me, why did they orchestrate the collapse of 2008? No doubt anymore that it was a showdown of some sort. Who pulled the plug on the markets and did they get what they were hoping for? All roads lead to Wall Street and the White House.

Dareconomics's picture

The Eurozone continues to claim that growth will "pick up" in the second half of 2013 with no basis. Notice how an end to the Eurocrisis is always around the corner.

Carl Spackler's picture

Yes, such is the modus operandi of charlatans.


CheapBastard's picture

"Yacht sales will soar in 2013," according to one luxury ship manufacturer. "It's the big banker bonuses that keep us going strong," the CEO opined.


No slowdown there.

walküre's picture

Those yachts make for a nice decoration at the docks. Moving around in those yachts costs a fortune and won't get any cheaper going forward. Yachts are THE uber tool for wealth destruction. But when you're a stupid banker fuck with money burning holes in your pocket and cheap unsophisticated taste, I guess owning a yacht is 'da bomb'.

Aurora Ex Machina's picture

Regarding Growth, Davos is doing it's thing. ZH isn't there?


Strange thing ~ channel 4 recently headlined with "Project Mimosa with Jacques Attali", but I can't find the talk, and he's only listed as talking on Mali.

Here's a Google of what they do: The main objective of the project was to develop methods to reconcile the differences in international migration statistics in European countries. The project produces estimates of both migration flows and population stocks. [source]. Here's a sample paper: Estimation of population stocks by country of birth, sex and age for 1st January 2002–2007 [PDF]. Note: it's worth looking up your plant knowledge of Mimosa pigra / pudica and what it represents (throw in "Australia" in there).[1]


[1] Note: of many "Project Mimosa's" out there, I did cherry-pick this one, since I can't find a basic landing zone of the title, apart from noting: In 2001, Jacques Attali was subject to investigations on the charges of « concealment of company assets which have been misused and influence peddling ». He was discharged on October, 27th 2009 by the magistrate’s court of Paris, « on the benefit of the doubt » [source]


/tinfoil time

Did the real agenda talk leak there?

eaglerock's picture

"IMF cuts global growth forecast"  Gee, where have I seen that headline before...

hooligan2009's picture

don't worry, european farmers just got a pay rise for doing nothing:

hooligan2009's picture

and don't worry twice, cos what's 0.3% on a 13 trillion euro economy? 40 billion euros? the ecb can print that in a heartbeat. this equates to somehwat less than a few weeks of its 4% of GDP budget deficit of over half a trillion euros (compared to the 7% US and Japan fiscal defcits).

europe is the poster child of the G3!