IMF: Japan quake will knock GDP

Japan’s annual growth forecast was cut from 1.6 per cent to 1.4 per cent by the International Monetary Fund (IMF) yesterday, following the devastating earthquake. The IMF also lowered the outlook for the US, reducing its 2011 forecast to 2.8 per cent, from three per cent. Indian growth prospects were also reduced from 8.4 per cent to 8.2 per cent. In the Eurozone, the IMF predicts growth of 1.6 per cent, yet dragged down by sluggish growth in Italy, expected at only 1.1 per cent for the year.