Thursday, the International Monetary Fund raised its global economic growth estimate for 2010. The fund forecasts the global economy to expand 3.1% next year, revised up from 2.5% estimated in July. Real GDP is expected to contract 1.1% in 2009.
Advanced economies are projected to grow sluggishly through much of 2010, the fund said in its latest World Economic Outlook. The fund sees 1.3% growth next year after shrinking 3.4% in 2009.
IMF Chief Economist Olivier Blanchard said, "The recovery has started. Financial markets are healing." But he stressed that, to sustain the recovery, private consumption and investment will have to strengthen as high public spending and large fiscal deficits are unwound.
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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.