IMF upwardly revises global growth

The International Monetary Fund (IMF) has today lifted its global growth forecast for 2010 to 4.6%, up from the 4.2% forecast in April.

However, it maintained its 2011 growth forecast at 4.%.

The upward revision for 2010 comes despite ongoing financial turmoil in the euro zone, triggered by Greece’s debt crisis that threatened to spread across the region.

Washington-based IMF said the revision was based on “expectations of a modest but steady recovery in most advanced economies and strong growth in many emerging and developing economies.”

The fund added: “At this juncture, the potential dampening effect on growth of recent financial stress is highly uncertain” but said there was “little evidence of negative spillovers to real activity at a global level.”

In the meantime, the IMF said the US economy was forecast to expand by 3.3% in 2010, while the euro zone is forecast to see growth of 1% and Asia by 9.2%.

China and India are expected to lead the way in Asian growth with forecasts of 10.5% and 9.4% respectively.

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