World recovery continues but risks increase: IMF
International Monetary Fund forecast (08-Jul-2010) world growth to rise to 4.5% in 2010, retreating to 4.25% in 2011. The world average will mask large differences around the globe, balancing the strong growth numbers for 1H2010 and the impact of increased financial turbulence. For advanced countries, growth in the first half is forecast to be 3%, while growth in the second half of the year is forecast to be only 2%, reflecting a slowdown in private demand growth. IMF warned that uncertainties surrounding sovereign and financial sector risks in parts of the Euro area could spread more widely, posing difficulties for both financial stability and the economic outlook.
IMF: “While we predict the recovery will continue, it is clear that downside risks have risen sharply," Olivier Blanchard, Chief Economist. Source: IMF, 08-Jun-2010.