The ‘World Economic Outlook’The world economy will grow at a 4.2
percent pace this year, stronger than
expected a few months ago, the
International Monetary Fund (IMF)
report, released Wednesday by the IMF, finds that emerging nations will lead stronger than expected growth in the world economy over the next year.
What’s happening is a “multi-speed” expansion, with emerging-market nations generally moving faster than advanced economies, the IMF said.
The broad pattern, though, is that
almost all nations are growing and
faring much better than last year.
The “World Economic Outlook” report sees 3.1 percent growth for the United States this year, while acknowledging large uncertainty for its
predictions in the US and elsewhere.
If any continent appears to be the
laggard, it’s Europe , with many
nations still in recession or with
growth so tepid – in the 1 percent
range – that recovery is barely
By contrast, from Latin America to Asia and Africa, developing and emerging
economies are showing solid growth.
The performance isn’t spectacular, but the clout of rising nations is visible in this fact: The IMF’s overall forecast for global growth (4.2 percent, up from 3.9 percent in January) is substantially higher than the growth expected this year for industrialized economies
such as the US, Japan, or European
Easing of monetary policy, stimulus spending by governments, and
regulatory efforts to defuse problems in credit markets have all played a role in the pickup. Global commerce has been reviving alongside consumer
confidence within many nations.
“The outlook for activity remains
unusually uncertain, even though a variety of risks have receded,” the report said.
One prominent risk: Banks in the US and Europe still remain exposed to weak real estate markets. Also, the IMF said it’s possible that “market concerns about sovereign liquidity and solvency in Greece could turn into
a full-blown and contagious sovereign
Although such a crisis may not occur, rising government debt leaves many nations with little room to maneuver if the world economy was hit by a new
Still, a separate IMF report this week also shows nations have made some headway in combating the crisis in
private credit markets .
The reports comes ahead of a
weekend meeting of the IMF and
World Bank , at which finance
ministers will consider ways to make the global economy better insulated from financial shocks like the crisis of 2008.
Top priorities urged by IMF officials include reform of financial regulation and for advanced nations to set plans
for controlling government deficits over the next few years.
..despite the many shananigans happening in our continent..the politics..the war on terror (somalia alshabab)…etcera,we’re making good progress. You might not actually “feel it”..the growth and all ,bt it certainly trickes down to you!