International Monetary Fund, in its World Economic Outlook, raised (25-Jan-2011) its 2011 growth estimates, adding: “The world economy is recovering, but it is a two-speed recovery". IMF stated the world economy will grow 4.4% in 2011, more than the 4.2% expected in Oct-2011. Expanding in 2012 is projected to reach 4.5%, unchanged from Oct-2010 expectations. [more]
IMF: "The two-speed recovery continues. 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. In many emerging economies, activity remains buoyant, inflation pressures are emerging, and there are now some signs of overheating, driven in part by strong capital inflows. Most developing countries, particularly in sub-Saharan Africa, are also growing strongly. Global output is projected to expand by 4½ percent in 2011, an upward revision of about ¼ percentage point relative to the October 2010 World Economic Outlook (WEO). This reflects stronger-than-expected activity in the second half of 2010 as well as new policy initiatives in the United States that will boost activity this year. But downside risks to the recovery remain elevated. The most urgent requirements for robust recovery are comprehensive and rapid actions to overcome sovereign and financial troubles in the euro area and policies to redress fiscal imbalances and to repair and reform financial systems in advanced economies more generally. These need to be complemented with policies that keep overheating pressures in check and facilitate external rebalancing in key emerging economies," Company Statement, 25-Jan-2011.