The part that's worse is that this view is based on Europe stepping up to resolve the economic crisis. As in the same Europe that keeps kicking the can down the road with Greece. The IMF report also warns against austerity, which will only make matters worse. It's challenging to imagine the problems being addressed in an effective and timely manner but anything could happen. The Guardian:
The International Monetary Fund has slashed its growth forecasts for most major countries in 2012 and urged governments to adjust the "rhythm" of their austerity measures to avoid derailing economic recovery. In an update of the forecasts in its autumn World Economic Outlook, the IMF said output in most major economies were, "decelerating but not collapsing". It pinned much of the blame on the debt crisis in the eurozone, where it expects GDP to shrink by 0.5% during this year. On the IMF's central projection, "most advanced economies avoid falling back into a recession, while economic activity in emerging and developing economies slows from a high pace." It is now expecting world GDP growth of 3.3% in 2012, down from the 4.1% it forecast in September.