Credit Crunch not as sharp as initially feared

The International Monetary Fund (IMF) has announced that the global slowdown which is a direct result of the credit crunch is not as bad as first feared. The global economy is expected to grow by 4.1% in 2008 against a forecast in April which stated 3.7%. However, this is still less than the 5% growth achieved in 2007.

Although this is a slight improvement the IMF stated that the global economy was still in a “tough spot”.

The first quarter slowdown was a lot less sharp than was predicted. Looking at the UK economy it is expected to grow by 1.8% in 2008 and 1.7% in 2009. People and businesses should still be wary of their financial situations but lets hope this is a sign of better times to come for the economy.