IMF to cut global growth forecast, sources say

WASHINGTON >> The International Monetary Fund will cut its global economic growth forecast for this year to 2.8 percent, but whether growth will rebound in 2002 is the subject of vigorous internal debate, IMF sources said today.

Sources inside the international lender said the IMF plans to cut its global growth forecast for 2001 to 2.8 percent when it publishes its World Economic Outlook in September, down from the 3.2 percent it forecast in April. In April the IMF also forecast 2002 global growth of 3.9 percent. But whether growth picks up in 2002 remains debatable, with some at the IMF predicting the economic slowdown in the United States will deteriorate next year while others are more optimistic. IMF management and the fund's research department, responsible for compiling the WEO, are calling for a rebound next year to global growth of 3.2 percent, predicated on a U.S. pickup to 2.5 percent growth in 2002 after a 1.5 percent U.S. expansion this year, the sources said.

Gateway to cut 25 percent of worldwide work force

San Diego >> Gateway Inc. plans to cut 15 percent of its U.S. work force and 25 percent of its employees worldwide.

The San Diego-based computer maker said it will take $475 million of charges in the third quarter and forecast losses for the third quarter and second half. It may stop operating in Europe, Gateway said.

A plant in Salt Lake City will be closed under the restructuring plan, which Gateway said will save $300 million annually. The company said it expects to end the year with $1 billion in cash and marketable securities.