Financial conditions have improved faster than the International Monetary Fund (IMF) expected when it made its last global forecast in April, largely due to government support for banks and other financial companies. IMF said the global economy is beginning a sluggish recovery.
The IMF expects the world economy to shrink by 1.4% in 2009, slightly worse than its earlier estimate of 1.3%. But it increased its estimate for global economic growth in 2010 to 2.5%, up from its April projection of 1.9%.
"The global recession is not over, and the recovery is still expected to be slow," the IMF said in an update to its world economic outlook.
Economies such as the United States, Europe, and Japan aren't expected to show sustained growth until the second half of next year, it said.
The IMF expects the U.S. economy to shrink by 2.6% this year, a slight improvement from its earlier estimate of a 2.8% decline and in line with many private forecasts.
China and India are both expected to grow this year, with China's growth forecast at 7.5% this year and India's economy to grow at a 5.4% pace.
to Daily News