It predicts that the US will have 2.7% growth this year and 2.3% next. Correspondingly, China will have 10.5% and 9.6%, India’s 9.7% and 8.4%. The good news is that we will be growing; the bad news is no where near the pace that we wish.
What should these countries do? In plain English, IMF recommended that:
- The US should cut deficit, stabilize banks, and export more.
- China should export less, consume more, and allow currency flexibility.
Sigh… Guess this means one more year of the same.