IMF predicts faster global economic growth this year

BBC News, 25 January 2011

The International Monetary Fund (IMF) has forecast that the world economy will grow faster this year than previously expected.

The IMF says economies in sub-Saharan Africa
could be among the fastest to grow

The IMF raised its growth forecast from 4.2% to 4.4%, but highlighted a two-speed recovery as advanced economies grow slower than emerging ones.

US growth is projected to reach 3%, up from the IMF's previous estimate of 2.3% published in October.

The IMF estimates UK growth will be 2%, unchanged from its previous forecast.

There was also no change in the 1.5% growth forecast for the eurozone or for Japan, where 1.5% growth is also predicted.

The IMF said in its report: "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."

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However, emerging economies were more "buoyant", the IMF said, with signs of overheating and inflation pressures a worry.

Growth projections for China and India were unrevised at 9.6% and 8.4% respectively.

Sub-Saharan Africa is predicted to produce the strongest growth of any region, at 5.8%.