The IMF has updated it's global economic projections and now claims the world will grow about 2.5% in 2010, with the caveat of > 10% unemployment into 2010 for the United States. (Folks, how can you call that a recovery if working people cannot find a job?)
This is in line with the World Banks recent estimates of 2% by removing China and India from their calculations.
Stabilization uneven, challenges remain
In the United States, high-frequency indicators point to a diminishing rate of deterioration, including in the labor and housing markets. Industrial production may be close to bottoming out, the inventory cycle is turning, and business and consumer confidence has improved. These developments are consistent with stabilization of output during the second half of 2009, with a gradual recovery emerging in 2010.
The U.S. is still projected to have almost flat growth, with a 0.8% GDP improvement in 2010.
Look at their comments on the Zombie Bank situation:
The financial sector continues to be dependent on significant public support, resulting in an unparalleled transfer of risk from the private to the public sector. Securitization remains impaired, except where there is official support. Bank credit growth is still slowing and deleveraging continues, which is likely to place a drag on economic recovery. As a result, more public intervention may be needed in the near term.
Ok, once again the Zombie banks might need more money, nobody seems to care that working people are broke, somehow an almost flat GDP growth projection is now (ahem) recovery....
With numbers like this, what is a disaster? Seems to me the United States has fallen into a mud puddle and the IMF is stating the U.S. will stay there.