When large institutions throw in the towel on growth, you know you have a problem. Now, the IMF has not cornered the prediction market, but they are a good benchmark for where the general consensus for growth will be. They are dropping growth estimates.
For the US, they have lowered 2011 growth to 1.5% from 2.5% in June and for 2012, growth has been lowered to 1.8% from 2.7%. For the EU, 2011 growth has been lowered to 1.6% from 2% and 1.1% from 1.7% for 2012. These forecasts suggest that there will not be any help for those unemployed.
The weird part of the IMF forecast is that global growth wills till hold to 4% for both 2011 and 2012. It is odd that there will be no spill-over to the rest of the world from a slowdown in Europe and the US.
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