In its latest World Economic Outlook, the IMF indicated that the global economy will grow faster than expected– at 4.2% this year. China’s growth is forecast at 10% 2010, with India also at a rapid 8.8 %.
Sub-Saharan Africa has weathered the crisis well and its recovery is expected to be stronger than in previous global downturns. In the depth of the crisis last year, world economic activity contracted by 0.6 % as world trade slumped and credit froze up.
Among the advanced economies, the United States is off to a better start than Europe and Japan.Among emerging and developing economies, emerging Asia is leading the recovery, while many emerging European and some Commonwealth of Independent States economies are lagging behind.
The Report is embedded in its entirety below. Be sure to take a look at the graph on page 20 of the viewer.
IMF World Economic Outlook 2010
The IMF’s upward revision of its forecast for China’s 2011 gross domestic product growth shows it doesn’t expect the pace of China’s economic expansion to slow much from the 10% it is predicting for this year. It comes as overheating risks are rising in the world’s third-largest economy even as Beijing has begun to gradually wind down the extraordinary stimulus program introduced in late 2008.
In contrast to the fast economic pace of China and India, the IMF cut its growth forecast for the 16-member euro zone in 2011, and now expects its gross domestic product to grow 1.5%, having previously expected it to grow 1.6%. It left its 2010 growth forecast unchanged at 1.0%.
Europe’s economy will recover at a slower pace than other parts of the world, and could lag even further behind if concerns about the Greek government’s ability to repay its debt become more general.
The news is better for Poland and Turkey, which the IMF expects to be the fastest growing economies in emerging Europe, expanding 2.7% and 5.2%, respectively, in 2010 and 3.4% and 3.2%, respectively, in 2011.
Trend to Watch: As the World Economy Kicks Back into High Gear, Look for an Unprecedented Level of International Business Activity to Sweep the World in Mid-2011.