IMF lifts global economic outlook
The international lender warns the recovery remains fragile with Europe providing the most risk.
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In a welcome reversal, the International Monetary Fund (IMF) has raised its forecast for global economic growth in 2012 and 2013, citing “an uneasy calm” at the moment in financial markets.
Global output is expected to expand 3.5% in 2012, up from a January forecast of 3.3%, and improve to a 4.1% rate in 2013, up from the previous forecast of 3.9%.
The global economy grew at a 3.9% pace in 2011. The main area of risk is the eurozone, which is expected to contract 0.3% in 2012 and then rebound to a positive 0.9% rate in 2013.
Spain was the only major country that had its 2012 growth outlook cut by the IMF, to a decline of 1.8% from the previous forecast of a 1.6% drop.
Asia looks headed to a soft landing, the IMF says. It also warns a disruption in oil from Iran will have a large impact, if not offset by supply increases elsewhere.
“One has the feeling that at any moment things could very well get bad again,” IMF chief economist Olivier Blanchard told a press conference in Washington DC.
While Europe has made strides in containing the spread of the crisis, it will not solve the difficult fiscal, competitiveness and growth challenges faced by some European countries face, he said.
“Bad news on the macroeconomic front or the political front still carries the risk of triggering” turbulence in financial markets, he added.
Nevil Gibson
Wed, 18 Apr 2012
Wed, 18 Apr 2012
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IMF lifts global economic outlook
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