* IMF slashes world growth forecast
The International Monetary Fund on Tuesday slashed its forecast for world economic growth, warning the weight of the eurozone crisis threatens to capsize the global recovery.
The IMF cautioned that sharper budget cuts by major economies in the face of slower growth could exacerbate the slowdown, and if European leaders fail to get on top of their debt crisis, global economic output could be cut by more than half.
In an update of its September economic forecasts, the IMF cut 2012 projections to 3.3 per cent from 4.0 per cent, and said the 17-nation eurozone would contract by 0.5 per cent this year.
It said global growth could pick up to 3.9 per cent in 2013, but only if market panic over eurozone fragility is avoided.
The newest forecasts are “predicated on the assumption that in the euro area, policymakers intensify efforts to address the crisis,” the Fund said.
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