The global economy, after being battered by recession, terrorist attacks and war, should grow strongly this year and next with growth in the United States hitting the fastest pace in 20 years, the International Monetary Fund predicted Wednesday. [...]The IMF so often gets things exactly backwards that now I'm truly worried that the global economy is about to collapse.
The IMF predicted the global economy would expand by 4.6 percent this year after growing by 3.9 percent in 2003. Those growth rates are 0.6 percentage point higher than the IMF's last global forecast made in September.
For 2005, the IMF sees continued strong global output of 4.4 percent.
For the United States, the IMF predicted growth this year of 4.6 percent, which if it comes true, would be the fastest growth rate since the U.S. economy expanded by 7.2 percent in 1984. That represented a 0.7 percentage point increase in the IMF's September forecast. [...]
However, the IMF downgraded its forecast for a number of countries in Europe which have been struggling to find the right mix of policies to bolster lagging growth. Countries using the euro, which has hit record highs recently against the falling dollar, will see growth of just 1.7 percent this year as the weaker dollar boosts the competitiveness of U.S. exports against European products.
The IMF gave credit to President Bush's 2001 and 2003 tax cuts and low interest rates engineered by the Federal Reserve for fueling this year's economic rebound.
Wednesday, April 21, 2004
Now I'm Worried
The IMF Boosts Economic Outlook for U.S. and Global Economies and gives credit for strong growth to Bush's 2001 and 2003 tax cuts: