IMF ups 2011 GDP estimates on stronger US growth

Thursday, 27 January 2011 00:01 - - {{hitsCtrl.values.hits}}

PARIS: The International Monetary Fund raised its forecast for global economic growth this year, reflecting stronger US output based on tax-cut extensions, while emerging nations lead the recovery.

The world economy will grow 4.4%, more than the 4.2% expected in October. Expansion next year is projected to reach 4.5%, unchanged from October, the IMF said on Tuesday in an update to its World Economic Outlook report.

“The world economy is recovering, but it is a two-speed recovery,” IMF chief economist Olivier Blanchard said in comments posted on the fund’s website. “Our forecast is that next year growth will be roughly the same as this year. That’s not going to be able to make a big dent to unemployment.”

While a faster-than-expected second half of 2010 helped put the world on a stronger foothold this year, the IMF warned that risks to its predictions remain “elevated.” It pressed euro-region governments to build a comprehensive plan to prevent sovereign-debt “financial stresses” from spreading out to other countries and urged emerging countries to closely watch the rise of asset price bubbles as inflation risks increase.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.