Euro crisis could almost halve China's growth, IMF says

The IMF forecasts China's economy will grow by 8.2% this year - but warns that a recession in the eurozone could cut this to 4.2%.

It said Beijing should get ready to inject billions of dollars into the economy to fend off any downturn.

China's economy grew by 9.2% in 2011, but growth was slowed by Beijing to avoid over-expansion.

The IMF's report comes as Greece enters another day of crisis talks aimed at finalising a 130bn-euro (£108bn; $171bn) European Union bailout.

Athens needs the money by mid-March to avoid default on its debts.

UK bank lending to shrink in 2012, says Item Club

UK bank lending is set to shrink this year for the first time since 2009, according to the Ernst & Young Item Club economic forecasting group.

Total lending is expected to fall by 2.2% with corporate loans down 5.7%, hitting small and medium-sized firms and affecting UK growth prospects.

Loans to consumers are set to fall by 5.4%, the Item Club predicts.

But it adds consumers are increasingly seeking alternative sources of finance, such as payday loans.