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IMF: Global Economic Growth Slowing

In Oslo, the economy has been untouched by the recession and it is a vibrant city with people still spending on everything from housing to consumer goods, June 20, 2012.
The International Monetary Fund says global economic growth is slowing as debt problems continue in Europe, and expansion is less than expected in major emerging economies.

IMF experts say the global economy will expand 3.5 percent this year and 3.9 percent in 2013, slightly lower than earlier estimates.

But a report presented Monday in Washington says the economic situation could get worse if efforts to improve Europe's situation stall, or if political gridlock in Washington lead to threatened drastic spending cuts and tax increases.

China's growth is projected to be eight percent this year and a little faster next year. Both figures are lower than previous predictions and less than the last two years. IMF experts predict that India, another key emerging market, will expand just over six percent this year, and a little faster next year. Those figures are also lower than prior years and earlier predictions.