IMF Raises Global Growth Forecast From 3.3% To 3.5%

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The IMF just raised its global growth forecast in its newest annual report, seeing improvements in the global economy although that remain “very fragile.”

Some of the most important details from the report:

– The fund still foresees a mild recession for the euro area, saying that this will drag down growth expectations for all advanced economies.

– It also identifies euro woes as its biggest persistent concern. According to the report, crisis in the euro area could lower global output by a full 2 per cent.

– The IMF suggests that policies aimed at real estate markets will boost growth.

– The fund criticises the pace of expanding credit in some advanced economies, however it criticises straightforward austerity when used as the only method to cleanse an unbalanced economy.

– The fund predicts that bank-lending in the euro area will remain very low, as uncertainty about the reprisal of the crisis continues to worry investors. Tight lending conditions could spread beyond the euro area if the crisis continues.

Read the full version here.

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