IMF: Euro crisis could derail global economy

The eurozone debt crisis is escalating and could derail the global economic recovery, the International Monetary Fund warned yesterday as it called for urgent action to restore confidence.

The IMF chopped its 2012 forecast for global growth to 3.3% from 4% just three months ago, saying the outlook had deteriorated in most regions. It projected world growth would strengthen to 3.9% in 2013.

However, it warned that growth this year would come in about 2 percentage points lower if Europe let the crisis fester.