IMF Says Rebound Will Be Sluggish, Credit-Constrained, And Jobless

The IMF is now raising its estimates for global growth.

Bloomberg: The Washington-based IMF said the economy will expand 3.1 per cent in 2010, more than a July forecast of 2.5 per cent. China’s economy will grow 9 per cent and India’s 6.4 per cent. That compares with growth of 1.7 per cent in Japan, 1.5 per cent in the U.S. and 0.3 per cent in the euro region.

“The global economy appears to be expanding again, pulled by the strong performance of Asian economies and stabilisation or modest recovery elsewhere,” IMF said in its semi-annual World Economic Outlook. Still, the rebound will be “sluggish, credit constrained and, for quite some time, jobless.”

It’s great that they’re upping their estimate, and 9% growth in China is pretty impressive, but in the end, and we mean this with all due respect to the economists at the institution, it all goes to show that nobody knows much of anything.

After the crash last year, the IMF and other organisations couldn’t slash their growth estimates fast enough. Now they’re increasing them (after an obvious surprise turnaround), but sticking with the jobless-line. Nobody knows.

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