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IMF Raises Global Growth Forecasts

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.

by RTTNews Staff Writer

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