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IMF Raises Global Growth Outlook For 2010: Report

The International Monetary Fund raised its forecast for global growth to 4.1% this year from a January prediction of 3.9%, the Italian news agency ANSA said on April 3, citing a draft of a report due to be published on April 21. The lender forecast 4.3% growth for 2011.

The U.S. economy is expected to grow 3% in 2010 and by 2.4% next year. Euro area gross domestic product is forecast to grow 0.8% this year and 1.4% next.

IMF sees a 2% decline in Greek GDP this year and 1.1% fall in 2011. The Italian economy is expected to expand 0.8% this year and 1.1% in 2011, down 0.2 points from the January forecast.

The European Central Bank should keep its exceptionally low interest rates to help sustain the economic recovery, the ANSA reported IMF as saying. The current ECB key rate is 1%.

Europe is emerging from the recession more slowly than other regions and there are various forces that affect the recovery, including the Greek debt issue, IMF said. The lender urged European authorities to provide credible consolidation plans.

by RTTNews Staff Writer

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