9 Oct 2013
Flash: IMF warnings on US Government default – BTMU
FXstreet.com (London) - Lee Hardman, strategist at Bank of Tokyo-Mitsubishi UFJ noted IMF warnings around a US Government default.
Key Quotes:
“Chief Economist Blanchard warned yesterday that a US government default could “seriously damage the global economy” which could push the US economy “back into a recession or even worse””.
“…the IMF views that as a low probability outcome and assumes only a short government shutdown and an agreement being reached on raising the debt ceiling before the 17th October deadline”.
“The IMF only modestly downgraded its outlook for the US economy in its latest WEO report expecting real GDP growth of 1.6%(-0.1ppt) in 2013 and 2.6% in 2014 (-0.2ppt)”.
Key Quotes:
“Chief Economist Blanchard warned yesterday that a US government default could “seriously damage the global economy” which could push the US economy “back into a recession or even worse””.
“…the IMF views that as a low probability outcome and assumes only a short government shutdown and an agreement being reached on raising the debt ceiling before the 17th October deadline”.
“The IMF only modestly downgraded its outlook for the US economy in its latest WEO report expecting real GDP growth of 1.6%(-0.1ppt) in 2013 and 2.6% in 2014 (-0.2ppt)”.