For Immediate Release
IMF Report Downgrades Global Economy and Issues Debt Warning
WASHINGTON - The International Monetary Fund (IMF) downgrades global growth forecasts and warns of rising debt levels in "emerging" economies in its newly released World Economic Outlook report. The report lowers growth forecasts in low-income and developing countries from 6% in 2014 to 4.8% in 2015. The IMF releases the report twice a year before its Spring and Annual Meetings. This year's joint IMF/World Bank Annual Meetings begin this week in Lima, Peru.
"Debt continues to take its toll on the global economy," noted Eric LeCompte, executive director of the religious development coalition Jubilee USA Network. LeCompte serves on United Nations finance expert groups "The IMF's cautious tone is well-founded and we need to change the debt, tax and trade polices that cause poverty."
In her annual pre-meetings speech, IMF Managing Director Christine Lagarde called global growth "disappointing and uneven" and called for policy changes to address pressing economic challenges. Lagarde specifically noted foreign debt in emerging markets as a concern. Currently almost 50 countries around the world face worrying levels of debt distress.
"Lagarde is right that our challenges require a policy solution," stated Andrew Hanauer, Campaigns Director representing Jubilee USA at the meetings, "In 2013 the IMF laid out a road map for improving debt policies that we must follow to move forward."
Read a summary of the International Monetary Fund World Economic Outlook report.
Read the IMF's 2013 report, "Sovereign Debt Restructuring - Recent Developments and Implications for the Fund's Legal and Policy Framework."
Jubilee USA Network is an alliance of more than 75 US organizations and 400 faith communities working with 50 Jubilee global partners. Jubilee's mission is to build an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA has won critical global financial reforms and more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org
Jubilee USA Network is an alliance of more than 80 religious denominations and faith communities, human rights, environmental, labor, and community groups working for the definitive cancellation of crushing debts to fight poverty and injustice in Asia, Africa, and Latin America.