The IMF Now Expects World GDP To Expand At Decade-High Growth Rate

The IMF’s Dominique Strauss-Kahn expects his institution to raise global growth forecasts to 4% for 2010.  This is a pretty huge change from the 3.1% expected not too long ago.

Reuters:

South America and Africa are also clearly recovering, but private demand in the United States, Japan and Europe remains weak, IMF Managing Director Dominique Strauss-Kahn said in an interview with the Nikkei.

Strauss-Kahn also quoted as saying he expects China to move on currency policy at some point, as the yuan is undervalued and allowing the currency to rise would benefit China.

The IMF sharply raised its estimates in January, predicting that the world economy would expand by 3.9 per cent in 2010, much higher than the 3.1 per cent it projected last October, with the pace picking up to 4.3 per cent next year.

4% global growth is actually very strong growth relative to the world’s historical growth rates. It’s as fast as the world has grown at any time in the last decade:

Chart

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