As investors have digested the contents of Monday’s economic forecasts from the International Monetary Fundthey seem to have focused more the negatives than the positives.
While the headline prediction of steady world growth of 4.4 per cent this year and 4.5 per cent in 2012 was reassuring, the Fund’s warnings about the world’s unresolved imbalances, the risks of credit-fuelled busts in emerging economies and the soaring oil price have hit home. In Asian markets on Tuesday, the oil price has extended the fall began in the US on Monday and equities have dropped sharply.
After hitting $127.02 a barrrel on Monday, its highest levels since 2008 on Monday, Brent crude fell sharply and was trading at 0730GMT at around $123.50. Prices tumbled after the IMF warned in its World Economic Outlook that “the risk that food and energy price increases will start an infflationary spiral is much greater in emerging and developing economies than in advanced economies.”
No comments:
Post a Comment