The International Monetary Fund's predictions for global economic growth will almost certainly be revised upward as the world embarks on a quicker-than-expected recovery from its worst recession in generations, the IMF's deputy head said Monday, dpa reported.
John Lipsky, the IMF's first deputy managing director, said the greater optimism would be reflected in a January update of the IMF's World Economic Outlook (WEO), a series of global forecasts that were last released in October.
"The year 2010 has opened amid generalized - but tempered - optimism about the global economic and financial outlook," Lipsky said in a posting on the IMF website.
"The improved prospects are evident in economic data, in financial market performance and in the marking up of economic forecasts," he said. "In fact, somewhat more upbeat expectations no doubt will be reflected in the regular January (WEO) update."
The IMF in October forecast that world economic output would grow by 3.1 per cent in 2010, after shrinking by 1.1 per cent in 2009. Wealthy nations will gain 1.3 per cent, while developing and emerging countries will lead the rebound with 5.1-per-cent growth in 2010.
Lipsky said there were still reasons for caution as the world comes out of recession, citing high unemployment and fragile financial systems in advanced economies. He urged world governments to keep massive public spending measures in place through 2010.