"There is little question that Greece is suffering and may suffer even more under the scenario of a disorderly exit from the Eurozone. But the effects on the rest of the world economy are likely to be limited," Director of Research Department IMF Olivier Blanchard said.
IMF's growth projection of India, however, is lower than the estimates of the Finance Ministry and the RBI. The Finance Ministry expects GDP growth to be 8-8.5 percent in 2015-16, while the Reserve Bank of India (RBI) has estimated it at 7.8 percent .
Olivier Blanchard, the IMF's chief economist, made the remarks at a news conference after the fund released its world economic outlook
IMF has warned that the failure to increase the debt ceiling would result in major disruption in financial markets.
According to Olivier Blanchard, the the advanced economies are continuing to recover and the emerging markets seem to have slowed down indicating that the people, the countries which were sick are getting in better shape and the ones that were doing very well are not doing quite as well.
The world economic crisis could take 10 years to run its course, the IMF's chief economist Olivier Blanchard told a Hungarian business news site in an interview published today.