Global growth 'slower than predicted'

The global economy will grow at a slower pace than previously predicted next year, the IMF warns.

It says global GDP will increase by 4.2%, down from the previous estimation of 4.3%. This forecast has dipped due to concerns about household debt and fragile financial systems. In addition, the IMF warns the UK economy remains vulnerable. It projects growth for 2011 of 2%, down from April's 2.1% estimate. The IMF says the economy will slowdown during the last six months of this year and the first half of 2011. It also says growth will suffer after the Government formally announces fiscal cuts in the spending review on 20 October.