Global recovery still weakening - IMF

This forcast still depends on the Eurozone making headway in bringing its debt crisis under control. It also  assumes that the US will overcome its 'fiscal cliff" and not allow automatic tax increases and spending cuts to take effect. Failure to act on either issue would make growth prospects far worse.and do not allow automatic tax increases and spending cuts to take effect. Failure to act on either issue would make growth prospects far worse, the IMF says.

Growth in emerging market and developing economies was marked down compared with forecasts in July and April to 5.3 percent, against 6.2 percent last year. Leading emerging markets such as China, India, Russia, and Brazil will all see slower growth. Growth in the volume of world trade is projected to slump to 3.2 percent this year from 5.8 percent last year and 12.6 percent in 2010.

“Low growth and uncertainty in advanced economies are affecting emerging market and developing economies through both trade and financial channels, adding to homegrown weaknesses,” said IMF Chief Economist Olivier Blanchard.

In the Middle East and North Africa region, activity in the oil importers will likely be held back by continued uncertainty associated with political and economic transition in the aftermath of the Arab Spring and weak terms of trade—real GDP growth is likely to slow to about 1¼ percent in 2012 and rebound moderately in 2013. Due largely to the recovery in Libya, the pace of overall growth among oil exporters will rise sharply in 2012, to above 6½ percent, and then return to about 3¾ percent in 2013.Sub-Saharan Africa is expected to continue growing strongly, averaging above 5 percent.
 
The World Bank -  IMF annual meetings are being held in Tokyo.