The new figure, which is still to be finalised, was given by IMF managing director Michel Camdessus, quoted in The Financial Times

today.

The lowered expectation was attributed to intensifying global financial turmoil, with the French banker laying the blame on political leaders in Russia and Japan.

The IMF chief did not expect a uniform cut in interest rates in Europe and the United States, which he said are at different stages in their economic cycles.

He criticised countries in the euro currency zone, saying Europe's finance ministers were not making enough effort to reduce public deficit, only one year after adopting a growth and stability pact.

Camdessus argued that they had been "very relaxed on the fiscal side", according to the newspaper.

"I have my objections to that, and I presume that if the worldcommunity would agree on really reducing interest rates further, then the European ministers of finance would start by consolidating their budget position further," he was quoted as saying.