Finance

Home page

Finance

IMF: World economic growth to decline next year

07 October 2010 08:30 (UTC +04:00)

Baku â€“ APA-Economics. The private sector employment unexpectedly decreased in the month of September. The private survey conducted by ADP said private sector employment fell by 39,000 jobs in September following a revised increase of 10,000 jobs in August, Ticker Magazine reported.

In another report, the Institute for Supply Management said that activity in the U.S. service sector expanded for the ninth consecutive month in September. The ISM index of activity in the service sector rose to 53.2 in September from 51.5 in August.

The International Monetary Fund warned that the financial system remains the biggest threat to global recovery. In its latest Global Financial Stability Report released on Tuesday, the lender said stability in the global financial system had gradually improved over the past six months, although considerable risks remain.

Separately, the IMF stated the world economy would grow 4.8% this year, better than 4.6% predicted in July. However, global growth will decline to 4.2% next year from an earlier forecast of 4.3% growth for 2011.

The IMF predicted 2.6% growth for the U.S. this year, before slowing to 2.2% next year. Euro area growth will be around 1.7% in 2010 and 1.5% in 2011. China is projected to expand 10.5% in 2010, closely followed by India, which is expected to grow 9.7%.