I.M.F. Raises Its Growth Forecast

[alp227]

Source: Associated Press

BEIJING (AP) — The world economy is recovering faster than expected but Europe’s debt crisis has increased financial risks and governments urgently need to rebuild shaky public confidence, the International Monetary Fund said on Thursday.

The Washington-based I.M.F. raised its 2010 world growth forecast to 4.5 percent from 4.1 percent in April. Its growth forecast for the United States rose to 3.3 percent from 2.7 percent. The outlook for the European nations that use the euro was unchanged at 1 percent.

But in its quarterly World Economic Outlook, the I.M.F. warned that “risks have risen sharply” because of Europe’s financial turbulence. It European leaders needed to act quickly to resolve debt problems and restore confidence in their banks.

Europe’s debt risks are “threatening to spill over to other regions” and reverse recent gains, the agency said in a separate Global Financial Stability Report.

Read more: http://www.nytimes.com/2010/07/08/business/global/08imf.html

[nyy1998]

1. That would be wonderful news if we could grow 3.3%

Obviously, the important thing is if unemployment would fall(which would also help the Dems chances in Nov). At 3.3% I'd be pretty optimistic. Also, this would help reduce the deficit.