International Monetary Fund (IMF) down global economic growth for 2011 and 2012 between 0.3 to 0.5 percent due to continued economic problems in the European Union (EU) and the United States. In the World Economic Outlook report for September, the IMF projected growth rate of four per cent for 2011 and 2012 compared with 4.3 percent and 4.5 percent in June.
IMF projections for the U.S. declined to 1.5 and 1.8 percent from 2.2 and 2.6 per cent, while for European countries, its economy is expected to grow by 1.6 and 1.1 per cent compared to two and a projected 1.7 percent in June.
Expected to be less affected Asian countries within the IMF projections with China is now expected to grow 9.5 and nine per cent compared to 9.6 and 9.5 percent in June. However, for the five ASEAN countries namely Indonesia, Malaysia, Thailand, Philippines and Vietnam, the economy is projected to grow 5.3 and 5.6 per cent compared with 5.4 and 5.7 per cent. The IMF said the economic crisis in the U.S. and the EU is taking longer than expected to resolve. "It is very worrying, consumer and business confidence indicators in developed countries fell drastically, and instead of strengthening the presence of temporary shocks can not be expected, "he said in the report. However, the IMF said, reports from Japan to promote and demonstrate the rapid recovery in industrial output and domestic spending. The report says the worst scenario is that banks in Europe need to quickly absorb market losses and capital levels that drops to 10 percent reduction triggered a new round of financial and Asia could face an increase in loan-related losses of property.