TOKYO.- The International Monetary Fund (IMF) on Monday drew a grim outlook for the global economy if developed and emerging countries fail to adopt structural reforms to ensure fiscal consolidation, debt reduction and economic growth.
For Dominican Republic, the WEO projection is similar to April’s, reduced just 0.5% for this year and next.
The Caribbean country is expected to grow 4% this year and 4.5% the next, the Dominican authorities have pointed out, despite the wide fiscal deficit to September.
IMF Economic Counselor Olivier Blanchard, who introduced the report of the World Economic Outlook (WEO), as part of the annual meetings, said forecasts for advanced countries were rolled back to 1.8% and 1.5% for 2012 and 2013 and 0.3% and 0.2% for emerging and developing countries, compared with July.
The IMF expects the world economy to grow 3.3% this year and 3.6% the next, with 5.3% and 5.6% for emerging economies.
Blanchard said the global recovery continues, but "too slow to significantly affect unemployment."
However the expert said that nearly all the pieces of the puzzle are coming together. "If we put them together, then the worst will be over."