WASHINGTON —

The International Monetary Fund on Thursday pared down its outlooks for the U.S. and Japanese economies to minus 0.7% and minus 0.2% in 2009 as the global financial crisis raises the specter of a global recession. The Washington-based lender also lowered its forecasts for Europe, with the result that growth in advanced economies as a whole is expected to dip 0.3 percent, the first fall since the end of World War II.
   
‘‘The U.S. economy will suffer, as households respond to depreciating real and financial assets and tightening financial conditions…In Japan, the support to growth from net exports is expected to decline,’’ it said.
 

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5 Comments

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  some14some at 07:30 AM JST - 7th November

  from the size of this article it seems contraction will be larger than IMF's prediction.

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  shonanbb at 02:47 PM JST - 7th November

  WOW...who would have figured that? What about the rest of the world? Same thing?

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  1eyedjack at 04:41 PM JST - 7th November

  "The U.S. economy will suffer, as households respond to depreciating real and financial assets and tightening financial conditions...In Japan, the support to growth from net exports is expected to decline"

  The obvious solution then is for Japan to start importing from the USA ! Keeping American factories open with large scale orders for Japan while Japan in turn creates a new and dynamic domestic market seems to be a no brainer. Why oh why does Japan continue to ignore this obvious, simplistic, and guaranteed solution ?

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  rajakumar at 05:55 AM JST - 14th November

  US,Japan,EU economies will contract by 0.3 percent 2009 . 99.7 percent of US/Japan/EU still working and as good as ever.

  The contraction will be temporary,more businesses will be moving more to developing nations in search of contraction stop and to make up for loss of business growth.

  Still plenty of growth needed is many nations of developing world.

  This contraction will be expand expansions in developing and growing nations. It is really good news for the developing world,who will see bigger interest by expansion seeking companies from US/Japan/EU.

  The drop in assets/prices will make costs get lower and improve exports competitiveness in long run as compared with china/asian products.

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  rajakumar at 05:57 AM JST - 14th November

  correction-This contraction will expand expansions in developing and growing nations.

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