It never takes much imagination to be gloomy about the global economy. Somewhere, something is always going wrong, usually in many places at
once. Currently, being a pessimist has seldom been easier. After the IMF’s annual gathering in Lima, causes for anxiety crowded upon the delegates from all directions.
The most basic of these is growth. Since July, the IMF has scattered minus signs all over its forecasts. The winner of the wooden spoon is hitherto fast-growing Brazil, downgraded by 1.5 per cent and now expected to suffer two consecutive years of recession. Other countries similarly hurt by weak commodity prices are suffering too, including Canada, Nigeria and Russia.
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