Global economy in danger - IMF

The International Monetary Fund says the world's economy is deeply into the danger zone because of risks from the eurozone.



The IMF predicts the global economy will grow by 3.25 per cent in 2012, down from an earlier forecast of 4 per cent.



The growth forecast for the UK economy has also been cut to 0.6 from 1.6 per cent.



However according to the fund the eurozone is set for a mild recession in 2012, with Gross Domestic Product expected to shrink by 0.5 per cent, compared with a previous forecast of 1.1 per cent growth.



The IMF said emerging markets, such as central and eastern Europe and Asia, could also be hit by the eurozone crisis.



It said world economies need decisive and consistent policy action to improve the current financial environment.