HONG KONG, July 8, 2010 (AFP) The IMF raised Thursday its global growth forecast for this year despite renewed financial turbulence stemming from an European debt crisis that has sharply raised potential risks.
The fund projected the world will grow by 4.6 percent, revising the 4.2 percent forecast in April, reflecting “stronger activity” during the first half of 2010 and expectations of fiscal action, especially in Europe.
The higher growth was on “expectations of a modest but steady recovery in most advanced economies and strong growth in many emerging and developing economies,” the Washington-based International Monetary Fund said.
It maintained its 2011 growth forecast at 4.3 percent in an update of its World Economic Outlook projections.
HONG KONG, July 8, 2010 (AFP)
Asia is expected to grow by higher-than-expected rates but “downside risks” have intensified in the region following financial turmoil in the eurozone area, the IMF warned Thursday.
The Chinese economy should expand by 10.5 percent following strong rebound in exports and resilient domestic demand, the fund said, revising its April forecast of 10.0 percent.
India’s growth this year was revised higher to 9.4 percent from 8.8 percent previously as robust corporate profits and favorable financing conditions fuel investment.
The expected rapid economic expansion of the world’s two most populous nations was in line with higher growth forecast for the region as a whole.