Though the IMF’s revised projections do not indicate a global recession, major developed economies will experience continued but much weaker growth this year, characterised by IMF’s chief economist as a “significant global slowdown”.

The new forecast for global economic growth this year is 4.1% compared with nearly 5% last year. Developed nations are likely to see the most impaired growth with US annual growth predicted to be below 1% by the end of 2008.

The report also states that the idea that the rest of the world is independent of what happens in the US was greatly exaggerated, except in the case of Africa.