IMF: World Economic Outlook Spring 2011
Overview:
The IMF has released its latest World Economic Outlook (WEO). This sees no significant change in the outlook for global growth from the Autumn Forecast. Growth remains relatively robust but unbalanced. Advanced Economies (AE) are growing but at a subdued rate. Meanwhile many Emerging Economies (EM) are seeing robust economic expansions. Risks of a double-dip economic recession have faded but have been replaced by fears that high oil and food prices may derail the recovery. The IMF does not expect this to be the case as the global economy is less oil dependent in the past, wage indexation is lower and inflation expectations more anchored. Nevertheless, while monetary policies in AE will tighten only slowly given fiscal retrenchment more rapid adjustment is needed in EM to prevent inflation.