IMF Raises 2010 Global Growth Forecast As Asia Leads Recovery.
"The International Monetary Fund (IMF) raised its forecast for global growth next year as more than $2 trillion in stimulus packages and demand in Asia pull the world economy out of its recession.... 'The global economy appears to be expanding again, pulled by the strong performance of Asian economies and stabilization or modest recovery elsewhere,' the IMF said in its semi-annual World Economic Outlook. Still, the rebound will be 'sluggish, credit constrained, and, for quite some time, jobless.'..." [Bloomberg]
AFP adds that "...growth momentum will build in Asia during the second half of 2009, forming the basis for a 'generally moderate recovery' in 2010, as demand from developed economies strengthens, said the report.... China will grow by 8.5 percent in 2009, down from nine percent last year, while India will expand by 5.4 percent, down from 7.3 percent in 2008. But next year China will grow by nine percent, and India by 6.4 percent, according the IMF forecast...." [Agence France Presse/Factiva]
Reuters reports that "...Asia's intensifying rebound was driven by expansionary fiscal and monetary policies, a recovery in financial markets and capital inflows, as well as the build-up of depleted inventory, the IMF said. 'Despite these positive signs, a sustained turnaround is not assured,' the outlook warned. 'The pickup in activity is so far being supported by many factors that could turn out to be temporary: rebounding capital markets, inventory adjustment, and expansionary fiscal and monetary policy,' said the Fund...." [Reuters/Factiva]