IMF expects world growth of 4.5% through 2012; downgrades forecast for US and Japan
International Monetary Fund (IMF), in its latest forecast, stated (11-Apr-2011) the global economic recovery is gaining strength, with world growth projected at around 4.5% in 2011 and 2012, but unemployment remains high, and risks of overheating are building in emerging market economies. “Given the improvement in financial markets, buoyant activity in many emerging and developing economies, and growing confidence in advanced economies, economic prospects for 2011/12 are good,” the IMF said in its Apr-2011 World Economic Outlook (WEO). However, disruptions to oil supply pose new risks to the recovery. Meanwhile, the IMF reduced its growth forecast for the US from 3% to 2.8% in 2011 and Japan's growth forecast was reduced from 1.6% to 1.4%.