The International Monetary Fund (IMF) on Wednesday slashed its global growth forecast, and recommended strong action to help it recover. The IMF said the global economy would likely contract 1.3 percent this year, in what would mark the slowest worldwide growth since the Second World War. The IMF said growth would resume at a pace of 1.9 percent next year. The IMF said it revised its growth estimates on the assumptions that financial markets will take longer than previously expected to stabilize. “A key concern is that policies may be insufficient to arrest the negative feedback between deteriorating financial conditions and weakening economies in the face of limited public support for policy actions,” the IMF said. The IMF said that stimulus measures should be increased in 2010 to help spur a recovery.
