Bad news for South Florida exporters and hoteliers seeking international arrivals: The International Monetary Fund now predicts the world economy will come to almost to a halt this year, posting its slowest growth since World War II.

The IMF said Wednesday it projects the world economy to grow just 0.5 percent this year, instead of the 2.2 percent rate it forecast in November. The reason: the deepening financial crisis in the UNited States and beyond.

"A sustained economic recovery will not be possible until the financial sector's functionality is restored and credit makers are unclogged," the Washington-based group said, urging "new policy initiatives."
By country and region, the IMF said the economy in the United States will shrink by 1.6 percent this year, more the 0.7 percent drop forecast in November.

It figures Japan will shrink 2.6 percent, Europe contract 1.8 percent and Canada dip 1.2 percent, portending problems for South Florida to attract foreign guests.

The Latin American and Caribbean region, the top market for South Flrida exporters, should grow by only 1.1 percent, instead of the 2.5 percent rate projected in November, the IMF said.

For the updated forecast, check www.imf.org/external/pubs/ft/weo/2009/update