IMF Upwardly Revises Outlook for Global Economic Growth in 2010

(RTT News)

The global economy is expected to grow more than initially estimated in 2010, led by growth in emerging and developing economies, the International Monetary Fund said Wednesday, upwardly revising its outlook.

The global lender now sees world economic growth of 4.2% this year, better than the 3.9% expansion predicted in January. Growth is expected to nudge up to 4.3% next year. The global economy contracted by 0.6% in 2009, as world trade slumped and credit froze up.

“We find ourselves at an important new stage of the crisis,” said IMF Research Department Director Olivier Blanchard. “A global depression has been averted. The world economy is recovering, and recovering better than we had previously thought likely.” However, Blanchard added that achieving strong, sustained, and balanced growth would require more work, namely fiscal consolidation in advanced countries, exchange rate adjustments, and a rebalancing of demand across the world. Read more here.