In a periodic update of its economic forecast, the Washington-based institution warned that the measures taken in Europe have not done enough to quiet markets and restore growth. The I.M.F. maintained its forecast of 2012 economic growth at 3.5 percent, but it cut its forecast of growth in 2013 to 3.9 percent, down from the estimate of 4.1 percent it made in April. In 2010, the world economy expanded 5.3 percent.
The I.M.F. cautioned that even those tepid forecasts might be too optimistic, if Europe does not do enough to ameliorate its debt crisis and if policies to improve growth in emerging markets fail to gain traction. Read more