IMF Revises Up Its Global Economic Forecast

IMF Blog, January 26, 2010

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The IMF has revised upwards its forecast for growth in the global economy, saying it is recovering faster than previously expected.
World growth forecast:
- 3.9 percent for this year.
- 4.3 percent in 2011.
The IMF said it had revised upwards its earlier forecast for global growth by ¾ percentage point from the October 2009 forecast.
Along with the update to its forecast, the IMF released a new assessment of global financial conditions in its Global Financial Stability Report (GFSR).

Recovery is proceeding at different speeds around the world:
- Emerging markets, led by Asia, are relatively vigorous.
- Advanced economies remain sluggish and still dependent on government stimulus measures.

IMF Chief Economist Olivier Blanchard: the recovery right now is still very much based on stimulative policies by government.
IMF Managing Director Dominique Strauss-Kahn warned that countries risk a return to recession if anti-crisis measures are withdrawn too soon.

The IMF said financial markets have rebounded since the lows of last March, the result of improving economic conditions and wide-ranging policy actions by governments.
Jose Viñals, Director of the IMF’s Monetary and Capital Markets Department: "Notwithstanding the recent sell-off, risk appetite has returned, equity markets have improved, and capital markets have reopened."

IMF Revises Up Its Global Economic Forecast — Dominique Strauss-Kahn, January 26, 2010