IMF raises 2010 growth forecast

The International Monetary Fund raised its forecast for global growth next year as more than $2 trillion in stimulus packages and demand in Asia pull the world economy out of its worst recession since World War II.

The Washington-based IMF said the economy will expand 3.1 per cent in 2010, more than a July forecast of 2.5 per cent. China’s economy will grow 9 per cent and India’s 6.4 per cent. That compares with growth of 1.7 per cent in Japan, 1.5 per cent in the US and 0.3 per cent in the euro region.

Days after President Barack Obama and other leaders declared that the Group of 20 is now the main forum for steering the global economy, the forecasts show emerging Asian nations powering the return to growth. The IMF, whose members are gathering in Istanbul for next week’s annual meeting, warned that the recovery would be “weak by historic standards” and said restoring banks to health remains a priority.

“The global economy appears to be expanding again, pulled by the strong performance of Asian economies and stabilization or modest recovery elsewhere,” IMF said.