Typical street scene in Santa Ana, El Salvador. (Photo: iStock)
IMF Survey: Careless 'Doom and Gloom' Chatter
February 11, 2009
The global downturn will be difficult, especially for workers in vulnerable sectors. But it's not the end of the world as we know it (photo: Newscom).
WORLD ECONOMIC OUTLOOK
Dear IMF Survey:
The rhetoric in the article "World Growth Grinds to Virtual Halt, IMF Urges Decisive Global Policy Response" (January 28, 2009) is factually incorrect and appalling.
"We now expect the global economy to come to a virtual halt."
The truth is that growth is forecast to slow to near zero, which is admittedly bad news. However, the reality is that the IMF forecasts the world economy next year will be as big as last year, which is bigger than it was the year before and the year before that and the year before that....
Unfortunately, such inaccuracies fuel a downward spiral of disaster talk, where everyone retreats to their bunkers and hides. Of course, this only exacerbates the problem.
The next years are going to be very difficult, especially for those who are vulnerable to the consequences of economic contraction. But it's not the end of the economic world as we know it (unless the IMF is hiding something).
We desperately need balanced, circumspect interpretation, not careless gloom-and-doom chatter.
Brett Hughes
Monash, Australia