IMF revises global growth down to 3.3%: Midday roundup

The International Monetary Fund has presented a gloomier picture of the global economy than a few months ago, saying prospects have deteriorated further and risks increased.

Overall, the IMF’s forecast for global growth was marked down to 3.3% this year and a still sluggish 3.6% in 2013.

In its latest World Economic Outlook, unveiled in Tokyo today ahead of the IMF-World Bank 2012 Annual Meetings, the IMF says advanced economies are projected to grow by 1.3% this year, compared with 1.6% last year and 3% in 2010. However, public spending cutbacks and the still-weak financial system are weighing on grwoth prospects.

“Low growth and uncertainty in advanced economies are affecting emerging market and developing economies through both trade and financial channels, adding to homegrown weaknesses,” said IMF Chief Economist Olivier Blanchard.

Treasurer Wayne Swan said in a statement today IMF predictions that the Australian economy will grow by 3.3% in 2012 and 3% in 2013 is “another indication of the Australia’s strong economic fundamentals”.

Australian shares hit 14-month high

The Australian sharemarket has hit a 14-month high this morning, despite losses overnight from Europe.

The benchmark S&P/ASX200 index was up 23 points or 0.5% to 4,505.3 at 12.00 AEST.

Creditors give Greece 10 days to introduce economic reforms

Greece has been given just 10 days to deliver on broken promises by next week’s European Union summit if it wants access to loans, creditors have warned.

“Acting means acting,” IMF managing director Christine Lagarde said after talks with Eurozone financial ministers.

Luxembourg’s prime minister, Jean-Claude Juncker, also said loans worth $40 billion could only be given to Greece if it “demonstrates” it can “implement” reforms “by October 18^th at the latest”.

ASIC cancels registration of Sydney liquidator

The Australian Securities and Investment Commission has accepted an enforceable undertaking from a Sydney liquidator, Geoffrey Turner, which prevents him from practising as a registered liquidator for life. Turner presently practises under the name G S Turner & Co, from offices located in the Sydney suburb of Hurstville.

Following an ASIC review of 60 external administrations of which Turner was the appointed external administrator, ASIC formed the view that he had failed to properly carry out his duties as a liquidator.

“Liquidators must ensure they act competently, and if that is found wanting, we will not hesitate to take action to protect the interests of creditors and the broader industry,” said ASIC senior executive leader Adrian Brown.

“Our proactive program of compliance visits for registered liquidators continues and we will take appropriate steps against those who don’t meet their obligations”.