The International Monetary Fund lifted the growth forecasts for the world economy for this year and next on Tuesday saying that the threat of a sharp slowdown has eased due to stronger activity in the U.S. and better policies in the euro area.
The lender raised the growth outlook for 2012 to 3.5 percent from 3.3 percent predicted in an update to its biannual World Economic Outlook report. In the September report, the IMF forecast 4 percent growth for this year.
The growth projection for 2013 was increased to 4.1 percent from the January prediction of 3.9 percent. World economy grew 3.9 percent in 2011.
The U.S. economy is seen growing 2.1 percent this year, better than the previous forecast of 1.8 percent. Eurozone is expected to shrink 0.3 percent, which is less than the 0.5 percent seen previously.
Among the few countries which had their forecast reduced are Spain and India.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.