IMF chief predicts 'serious slowdown' of US economy

xinhua

The chief of the International Monetary Fund (IMF) Dominique Strauss-Kahn said in Davos on Saturday that he expected a "serious slowdown" of the US economy.

"Whatever the answer on a recession, what is clear is there will be a serious slowdown in the United States," Strauss-Kahn, the IMF's managing director, told a panel at the annual meeting of the World Economic Forum.

As 2,500 political and business leaders gathered at the Swiss ski resort, the meeting was clouded by mounting concern over the US economic outlook in the aftermath of the subprime mortgage crisis, with some economists even warning of a recession.

Strauss-Kahn said the IMF was scheduled to update its economic forecast next week, which was certain to have a lower growth figure for the US.

He added that although the developing economies would largely perform well, it was unlikely that they would be immune from the US slowdown because of their substantial links with the US economy.

IMF spokesman Masood Ahmed told reporters on Friday he saw a period of below-potential economic growth for the US, saying the recent sharp interest rate cut by the Federal Reserve was appropriate and helpful.