IMF optimistic for faster global economic growth

| January 25, 2011 | 0 Comments

The International Monetary Fund (IMF) has today provided a positive assessment for global economic growth, lifting its forecast for 2011 from 4.2% to 4.4%.

However, it highlighted that risks remain from the debt crisis in the euro zone.

It also warned of overheating in fast-growing emerging economies including China and Brazil - who are both faced with inflationary pressures.

Meanwhile, it expects the UK economy to grow by 2% in 2011 - unchanged from its previous estimate.

However, earlier today, the Office for National Statistics (ONS) revealed the UK economy contracted by 0.5% in the October to December period.

The figures shocked economists who had expected growth of 0.5% following growth of 0.7% in the third quarter and 1.1% in the April to June period.

In the meantime, the IMF expects the US economy to grow by 3%, much high than its 2.3% estimate published in October.

Growth forecast for China and India were unchanged at 9.6% and 8.4% respectively.

In its report, Washington-based IMF said: “In advanced economies, activity has moderated less than expected, but growth remains subdued, unemployment is still high, and renewed stresses in the euro area periphery are contributing to downside risks.”

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