The International Monetary Fund (IMF) is almost certain to revise its forecasts for global economic growth upwards in January as the world experiences a faster-than-expected recovery from the worst post-war crisis, said John Lipsky, Deputy Managing Director of the IMF.
He added that the increased optimism will be reflected in the January updated IMF World Economic Outlook (WEO)."The year 2010 began with a general, albeit cautious, optimism regarding global economic and financial forecasts," Lipsky said in a post published on the IMF’s website."Improved circumstances are evident in economic data, financial market performance, and the growth of economic forecasts," he added.
"In fact, somewhat more positive expectations will undoubtedly be reflected in the January updated edition of the WEO." In its October report, the IMF projected a 3.1 percent growth in the global economy for 2010, following a 1.1 percent decline in activity in 2009. Wealthy countries are expected to record a 1.3 percent growth, while developing countries and emerging economies will lead the recovery with a growth of 5.1 percent in 2010. Lipsky emphasized that there are still reasons for caution due to the gradual exit of the world from recession, warning of high unemployment rates and fragile financial systems in advanced economies, and called on governments around the world to continue implementing extensive public spending programs in 2010. (H)
