Entering a new phase of the global economic crisis
The International Monetary Fund has cut its economic growth forecast for the United States and warned that we are “playing with fire” by not taking immediate step to address our long-term debt.
The global lender forecast that U.S. gross domestic product would grow an anemic 2.5 percent this year and 2.7 percent in 2012.
“You cannot afford to have a world economy where these important decisions are postponed because you’re really playing with fire,” said Jose Vinals, director of the IMF’s monetary and capital markets department.
“We have now entered very clearly into a new phase of the [global] crisis, which is, I would say, the political phase of the crisis,” he said in an interview in Sao Paulo, where the forecast was published…
“If you make a list of the countries in the world that have the biggest homework in restoring their public finances to a reasonable situation in terms of debt levels, you find four countries: Greece, Ireland, Japan and the United States,” Vinals said.