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.

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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.