IMF ups growth forecast
THE International Monetary Fund (IMF) has increased its predicted rate for next year’s global economic expansion to slightly less than three per cent.
In July the IMF predicted the global economy would grow by 2.5 per cent in 2010, but has now improved its forecast.
“The recovery is for real but it is very heavily policy dependent,” said senior IMF economist Jörg Decressin at a session at the Carnegie Endowment for International Peace.
He said that private demand would have to replace the boost to the global economy from government monetary and fiscal expansion.
The UK has this week agreed to provide the IMF with around $15.5bn (£9.6bn) as part of the international effort to triple the fund’s resources. The European Union aims to give $100bn to countries hit hardest by the world recession.