IMF revise global growth forecast

IMF revise global growth forecastbigstock-Spreadsheet-And-Pen-resized

Managing director of the IMF, Christine Lagarde, announced that the International Monetary Fund will be raising its forecast for global growth at a press conference in Nairobi. The revision is expected to be made within the next couple of weeks.

The IMF lowered their growth forecasts last October when it was clear that the effect of the global economic and financial problems would hinder growth progress. The 2014 projection was cut to 3.6% and the 2013 growth estimate to 2.9%.

By raising its forecast, the IMF has announced a more positive outlook for the global economy after a period of strong recovery. The annualised rate of GDP growth between July and September last year was 4.1%, exceeding its 3.6% estimate.

The U.S Commerce department raised its growth forecasts to the highest since 2011 and projections for the UK economy were also increased. U.S President Barack Obama said that 2014 will be a “breakthrough year” for the US economy.

By performing so well, developed countries such as the U.S and U.K have negated the slower pace of emerging economies like China, India and Brazil, which economists were concerned would hinder global expansion and recovery.

The Office for National Statistics (ONS) increased its annual growth forecast from 1.5% to 1.9%.