IMF says economy in dangerous phase

The International Monetary Fund (IMF) has warned that continuing political and economic woes in the US and the Eurozone could force them back into recession.



According to the Fund, the global economy has entered a dangerous new phase of sharply lower growth.



It says the prognosis for economies in the developed world is weak and bumpy expansion.



It predicts their GDP will expand at an anaemic pace of 1.5 per cent in 2011.



Among the major advanced economies, the IMF now thinks Germany and Canada will be the only countries to grow by more than 2 percent in 2011.



The IMF says strong leadership is now crucial in staving off recession in the US and Eurozone.