IMF: World economy to slow sharply, led by US

(Agencies)
Updated: 2008-10-08 22:38

China and India will see growth clock in this year at a robust 9.7 percent and 7.9 percent, respectively. Even if those projections prove correct, they would still mark downgrades from their blistering performances last year. Russia's economy should grow by a brisk 7 percent this year, down from 8.1 percent last year.

Inflation around the world remains high, driven up by surging energy and food prices through much of this year.

It will be tricky for Bernanke and his counterparts in other countries to navigate weak growth and inflation pressures, the IMF said.

"The immediate policy challenge is to stabilize financial conditions, while nursing economies through a period of slow activity and keeping inflation under control," it said.

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