IMF Growth Forecasts Seen Too Optimistic in Large-Loan Countries

The International Monetary Fund tends to be too upbeat when projecting the economic growth of countries that receive large loans, an internal audit found.

In a report that looks at IMF loan programs between 2002 and 2011, the auditor found that “the forecast bias at program inception was optimistic and significant” for nations that could borrow more than their size at the fund would allow under the “exceptional access” rule.