The eurozone could break up and trigger a global economic slump to rival the Great Depression, the IMF warned last night.
In its World Economic Outlook report, the International Monetary Fund said the collapse of the crisis-torn single currency could not be ruled out.
It was the first time the Washington-based institution has accepted the prospect of the eurozone splitting up and follows fears over the health of the Spanish economy.
The IMF predicted a return to recession in the eurozone this year but upgraded its growth forecasts for Britain.
However, it warned that the world remains at risk of collapsing into a slump that would rival the Great Depression – with ‘acute risks in Europe’ the major threat.
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12:01 pm EDT, April 18th, 2012 — IMF fears $3.8 trillion forced asset sale by eurozone banks
12:02 pm EDT, April 18th, 2012 — Emerging Nations Vie for Power at IMF
12:03 pm EDT, April 18th, 2012 — Spanish banks’ bad loans rise to highest level since 1994
12:04 pm EDT, April 18th, 2012 — Spain Wants Billions For its Banks
12:05 pm EDT, April 18th, 2012 — European stocks retreat on debt crisis concerns
12:07 pm EDT, April 18th, 2012 — Italy slashes growth forecast to miss deficit target
12:08 pm EDT, April 18th, 2012 — Hollande says German crisis fix is misguided
12:09 pm EDT, April 18th, 2012 — Britain faces £50bn more spending cuts and tax rises to cover elderly care, warns IMF
12:10 pm EDT, April 18th, 2012 — Europe Must Pool Its Debts to Survive
12:13 pm EDT, April 18th, 2012 — Debt crisis: live