IMF REVISES UP GLOBAL FORECAST TO 4 PERCENT FOR 2010

PanARMENIAN.Net
03.02.2010 11:15 GMT+04:00

/PanARMENIAN.Net/ The global economy, battered by two years of crisis,
is recovering faster than previously anticipated, with world growth
bouncing back from negative territory in 2009 to a forecast 3.9 percent
this year and 4.3 percent in 2011, the International Monetary Fund
said in its latest forecast.

But the recovery is proceeding at different speeds around the world,
with emerging markets, led by Asia relatively vigorous, but advanced
economies remaining sluggish and still dependent on government stimulus
measures, the IMF said in an update to its World Economic Outlook,
published on January 26.

"For the moment, the recovery is very much based on policy decisions
and policy actions. The question is when does private demand come and
take over. Right now it’s ok, but a year down the line, it will be a
big question," IMF Chief Economist Olivier Blanchard said in an IMF
video interview.

IMF Managing Director Dominique Strauss-Kahn has warned that countries
risk a return to recession if anti-crisis measures are withdrawn
too soon.

The IMF said it had revised upwards its earlier forecast for global
growth by 3/4 percentage point from the October 2009 forecast.

The IMF report said that the varying pace of recovery across countries
called for a differentiated response in the unwinding of measures
used to stimulate the economy and combat the crisis.

Due to the still-fragile nature of the recovery, fiscal policies
need to remain supportive of economic activity in the near term,
and the fiscal stimulus planned for 2010 should be implemented fully.

However, given growing concerns about fiscal sustainability,
countries should also make progress in devising and communicating
exit strategies.