9 March 2001, 14:14 IMF Mussa sees 2001 world growth 3.5%, 4% in '02 vs 5% in 2000
--IMF's Mussa says U.S. "to skirt the edge of recession"
--IMF's Mussa sees BOE easing rates in next 6 months
--IMF's Mussa sees ECB easing 50 bps in 2 moves by mid-year
--IMF's Mussa says 100 bps Fed rate cut likely in H1
--IMF Mussa sees 01 U.S. growth at 1.5-2%; Eurozone just under 3%
Cernobbio, Italy, March 9 (BridgeNews) - International Monetary Fund
Economic Counselor and Director of the Research Department Michael Mussa
said Friday he sees global economic growth slowing from last year's 5.0%
to 3.5% this year but then picking up to 4.0% in 2002. Speaking on the
sidelines of a closed-door workshop on "Governing, Money and Finance"
Mussa also said U.S.
growth in 2001 is set to stand at 1.5-2.0%, while that of the euro zone,
which looks like an area of strength, is seen at just under 3.0%.
* * *
The IMF chief economist also said the U.S. will "skirt the edge of
recession" this year but that any recession "would be nominal but not
real."
The chief economist pointed out that "global trade expanded rapidly in
2000 in the double-digit range but will be in the single-digit range in
2001."
Mussa went on to say he sees an additional 100-basis-point rate easing
by the U.S. Federal Reserve in the first half of this year, in addition to
the 100 basis point rate cut already announced this year.
The IMF chief economist, who is set to step down from his post at end
of his term on June 29, also said he sees the European Central Bank easing
rates by 50 basis points, in 2 moves, by the middle of this year. He also
said he expects the Bank of England to ease its monetary policy in the
next 6 months, but did not specify how much this easing could entail.
Regarding Japan, Mussa said there were still serious problems in the
financial sector, exacerbated by the slowdown in growth. "Japan won't
borrow from the IMF because they have huge reserves and resources of their
own," he said. "They have limited room for maneuver in monetary and fiscal
policy but have some room to ease interest rates further." End
© 1999-2024 Forex EuroClub
All rights reserved