The world economy will expand by 3.9 per cent in 2010, the International Monetary Fund said as it raised its global economic growth forecast yesterday.
The pace of growth is expected quicken in 2011, with the world economy forecast to expand by 4.3 per cent. The Washington DC based organisation had previously expected an expansion of 3.1 per cent over 2010. "I don't think we're that optimistic, but we're less pessimistic than we were in the last World Economic Outlook in October," the Fund's chief economist Oliver Blanchard said in an interview with Reuters Television, adding that while the estimates were better, "they're still quite mediocre".
"If you look at what our forecasts are for the recovery in the major advanced countries, these are still weak numbers," he said.
The Chinese economy is expected to lead the way, and is forecast to grow by 10 per cent this year, while the US is expected to expand by 2.7 per cent this year. The UK economy, which crept out of recession in the fourth quarter of 2009, is expected to growth by 1.3 per cent in 2010, compared to 0.9 per cent on the IMF's previous projections.