The IMF
predicts the global economy will grow by 3.25% in 2012, down from an
earlier forecast of 4%. But the eurozone is set for a "mild recession"
in 2012, with GDP expected to shrink by 0.5%, compared with a
previous forecast of 1.1% growth. Shadow chancellor Ed Balls called for the
government to rethink its austerity plan in the light of the
IMF estimates.
"Last
year the IMF was clear that if growth undershot expectations then the British
government should reconsider the pace of spending cuts and tax rises which
choked off our recovery well before the recent eurozone crisis, pushed up
unemployment and has seen borrowing forecasts soar," said Mr Balls.
"Now
the IMF has slashed their growth forecasts and confirmed that growth in
Britain will indeed be much lower than they expected. And they have called on
countries with low interest rates, like the UK, to reconsider the speed of
their spending cuts and tax rises."
In
response, the government said the IMF predictions matched those made by the
independent Office of Budgetary Responsibility, which informs government
economic policy.
"The
IMF has downgraded its growth forecasts for all the major economies,
reflecting the deterioration in the global outlook since their
last forecasts in September," said a Treasury spokesperson.
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VOCABULARY
1.
Global (adj.) - affecting
or including the whole world [↪ universal]: Ex: global climate
change
2.
Forecast (n) - a
description of what is likely to happen in the future, based on the information
that you have now [↪ prediction]: Ex: weather forecast
3.
Recession (n) - a difficult time when there is less trade,
business activity etc in a country than usual: Ex: recession in early 1980s.
4.
Shrink (v) - to
become or to make something smaller in amount, size, or value. Ex: We want
to expand the business, not shrink it.
5.
Chancellor(v) - the
leader of the government or the main government minister of some countries:
6.
Austerity (n) -bad
economic conditions in which people do not have much money to spend. Ex: a
time of great austerity after the war
7.
Downgraded (v) - to make something seem less important or
valuable than it is:
8.
Deterioration (n) - a bad or worse situation:
9.
Outlook (n) - what is
expected to happen in the future
QUESTIONS
FOR DISCUSSION
1.
What can you say about global economy today?
2.
What do you think should be done to prevent
recession?
3.
Discuss about the importance of saving money.
4.
What are the effects of global recession to
your country?
5.
Is it easier to get a job now than before?
Why?
