The US economy will tip into a mild recession in 2008. So says a report by the International Monetary Fund, or IMF. This has been a result of housing crisis that caused ripple effects in the financial markets as well.

The IMF report also says that the global economy will crawl to 3.7% growth this year. That is 0.5% slower than what was projected in January. IMF has also pointed out that although growth will continue to be strong among emerging economies, they will face high inflation from buoyant food and fuel prices. In some countries, further monetary policy tightening may be needed to keep inflation under control.