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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