IMF: World Economic Outlook April 2010
Overview:
The IMF has upgraded its forecast for global economic growth for 2010 by 0.3 percentage points. While this is good news, there is a growing divergence between the performance of the Advanced Economies, which remain relatively lethargic, and a much more robust recovery in the Emerging and Developing Economies. The former are faced with a prolonged period of fiscal consolidation to avoid public debt crises while the latter increasingly need to seek a solution to increased capital inflows on the basis of a stronger growth/higher interest rate outlook. Eastern Europe continues to underperform other Emerging and Developing Economies because of its over-reliance on capital inflows to finance large current account deficits before the crisis hit. However, even here there are signs of a solid, if unspectacular, economic recovery.