IMF sees faster global growth, eurozone risk
Baku, January 25 (AZERTAC). The International Monetary Fund (IMF) said on Tuesday the global economic recovery was gaining traction, but highlighted risks from the eurozone financial crisis.
The IMF said the two-speed global recovery -- with advanced economies growing significantly more modestly than emerging economies -- was shifting gears as economic powers the United States and Japan saw rising consumption.
"In advanced economies, activity has moderated less than expected, but growth remains subdued, unemployment is still high, and renewed stresses in the euro area periphery are contributing to downside risks," the IMF said in an update of its world economic forecasts.
The Washington-based institution released the latest updates in Johannesburg, South Africa, where top IMF officials were set to hold a news conference.
The IMF projected the global economy`s output would expand by 4,4% in 2011. That is slightly higher than the 4,2% annual rate projected in the fund`s October projection.
"This reflects stronger-than-expected activity in the second half of 2010 as well as new policy initiatives in the US that will boost activity this year," it said.
The annual pace, however, would still be slower than the 5% seen in 2010.
The IMF said a new US fiscal package passed in late 2010 was expected to boost growth in the world`s biggest economy by 0,5%.
The US economy had the sharpest mark-up by far: a 0,7-point gain to GDP growth of 3% in 2011.
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