The International Monetary Fund has cut its projection for worldwide growth for both this and the coming year, while stating that a potential prolonging United States budget crisis could seriously affect the global economic landscape.
Projections were reduced for all major emerging markets, including China, Mexico, India and even Russia, resulting in point 2 loss in both the 2013 and 2014 worldwide growth rate. IMF lead economist Olivier Blanchard stated that this less optimistic approach is due to that fact that growth in emerging-markets has slowed, but on the bright side, he insisted that advanced economies continue to show signs of momentum.
However this could all change soon, as the U.S. budget situation continues to cause worries both on federal and global scales. The IMF statement is clear, if Washington does not sort this out, everyone will get hurt, and not even the booming economies of the emerging-markets are safe. The stakes are high, all of the major players are aware of this, yet the tension is increasing as both President Barack Obama and the Republican Party hold their ground.
Washington has found a new role as global economic terrorists, keeping the global economy hostage. The future may be unsure as of now, but macro data indicates that the U.S. and European markets continue to show signs of steady recovery, with China desperately trying to cool its own over-clocked economy. It is a strange time to be make predictions, as these turbulent economic tides make even the IMF pre-cautious.