Slower global growth reflects close economic links

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Associated Press

Posted on July 22, 2012 at 7:00 AM

Updated Sunday, Jul 22 at 7:01 AM

WASHINGTON (AP) — Experts say the anemic world economy illustrates one of the consequences of globalization and the unprecedented links between regions.

As one region weakens, others do, too. In short, there's nowhere to hide.

Six of the 17 countries that use the euro currency are in recession. The U.S. economy is struggling again. And the economic superstars of the developing world — China, India and Brazil — are in no position to come to the rescue. They're slowing, too.

That's why Europe's slowdown is hurting factories in China. And why those Chinese factories are buying less iron ore from Brazil.

The global economy is in the worst shape since the dark days of 2009, but so far, few economists foresee another global recession.

The International Monetary Fund has reduced its forecast for world growth this year to 3.5 percent, the slowest since a 0.6 percent drop in 2009.

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