IMF: With US in crisis, global economy in peril

From the report below, it seems that the economic growth pillars of the world are in the hands of China, India, Far East regions and other developing nations.

AFP: The global economic outlook is becoming increasingly grim as the United States appears unable to escape recession from a housing meltdown whose effects are still spreading, the IMF said on Wednesday. Global expansion is set to slow to 3.7% in 2008 amid an unfolding crisis that began in the United States, the IMF said in its semiannual World Economic Outlook (WEO) report. The growth estimate is a half point lower than the January WEO update, it noted. The US economy, the world's biggest, is likely in a "mild recession" and will stagnate through much of 2009 as housing prices slide further and credit conditions remain difficult. For the world economy, there is a 25% chance of dropping below three percent growth in 2008 and 2009, which according to the IMF would be the equivalent of a global recession. The United States, the epicenter of the turmoil, is poised to grow a paltry 0.5% in 2008, despite multibillion-dollar government stimulus package. US growth for 2009 will improve to 0.6%, a "modest" recovery expected as financial institutions clean up their balance sheets. Growth in the 15-nation eurozone is set to decelerate to 1.4% in 2008 and 1.2% in 2009, down 0.2% and 0.7% respectively, from the January update. Japan, the world's second-largest economy, is poised to slow to pace of 1.4% this year with little improvement at 1.5% in 2009. The combined growth of developing nations will decelerate to a still-robust 6.7% expansion in 2008, off 0.2 percentage points from the prior forecast, and slip to 6.6% in 2009. China will continue to lead growth, expanding at 9.3% in 2008 and 9.5% in 2009, down 0.7 point and 0.5 point respectively. India is poised for a 7.9% expansion this year, down 0.5 point, and 8.0% in 2009, off 0.2 point.