It’s not that the IMF lowered its growth estimates for 2014 and 2015 each by 0.1 and 0.2 percentage points, respectively; it’s that they downgraded growth for developed economies, forever.
IMF chief economist Olivier Blanchard said future growth rates are being revised down. And that potential growth rates for the US and UK have been trimmed.
He also warned that the stalling recovery in the eurozone risks weakening demand further and that low inflation could possibly turn into deflation. The probability of a recession everywhere is higher.
IMF probability of recession and deflation
