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