IMF lowered its forecast for global economic growth
The International Monetary Fund (IMF) lowered its forecast for global economic growth in 2015 and urged governments and central banks to implement loose monetary policy and structural reforms to support growth. The institution expects the world economy to grow by 3.5 percent this year and 3.7% in 2016, representing a decrease of previous forecasts for both years by 0.3%.
In its winter forecast the fund has not stated specifically Bulgaria, but predictions were made for the big countries - developed and developing - as well as economic blocs such as the euro area.
It seems that the World Economy Rolling Toward Total Collapse is getting closer to happening now, as we have been forecasting. The situation is quite dire. Even though many pundits out there are saying the market is feeling it, they have it wrong, the global stock markets having nothing to do with the real economy. That is they are unrelated. News does effect the market but they are dislocated from each other.
"Some new factors that promote growth - lower oil prices and the depreciation of the euro and the yen were more than offset by the persistent negative trends, including the effects of the crisis and weaker growth potential in many countries," said Olivier Blanchard , IMF chief economist, quoted by Reuters.
The Fund advises the developed economies to maintain low interest rates, as the cheapest oil has highlighted the risks of deflation. "If interest rates can not be lowered more, which is the case in most developed economies, the IMF recommended to follow the same line in monetary policy" by other means ".