The International Monetary Fund (IMF) said on Wednesday that it expects modest global economic growth in 2013 along with fewer economic risks and lower levels of financial stress.
The IMF was bold to say that continued improvement in global financial conditions could result in a brighter than expected economic picture.
This Website Is For Financial Professionals Only
The IMF makes a World Economic Outlook report every six months. Noting that optimism is in the air, the IMF nevertheless said there were still major obstacles to be surmounted.
The fund downgraded its growth estimates in Europe from October even after acknowledging that Europe had made progress in addressing its sovereign debt concerns.
It decreased its growth forecast from October .1% for the US, .3% for Europe, and .4% for newly industrialized areas of Asia such as Singapore and South Korea.
Overall, the fund does not expect growth to return to precrisis levels for several more years. It projects global growth
of 3.5% in 2013 and 4.1% in 2014, contrasting with predictions before the crisis of 4.5% to 5.5% global growth on an annual basis.