International Monetary Fund Says Global Economy Getting Stronger

For more news visit ☛ http://english.ntdtv.com Follow us on Twitter ☛ http://twitter.com/NTDTelevision Add us on Facebook ☛ http://facebook.com/NTDTelevision The International Monetary Fund reports that the the worldwide economic outlook is strengthening. The IMF notes that developing countries will outpace advanced economies over the next two years. The International Monetary Fund (IMF) announced on Monday that Soaring oil prices and inflation in emerging economies pose new risks to global recovery. But the good news, says the IMF, is that these factors are not yet strong enough to derail it. The global lender's latest assessment of world economic prospects marked a departure from recent years when its focus was on the potential peril from a near-financial meltdown and recession in advanced countries. [Olivier Blanchard, IMF Economic Counselor and Research Director]: "So, for the world economy, for both 2011 and 2012, we expect the growth rate to be 4.5 percent - a fairly high growth rate. But if you look at the details, you find for advanced economies, we forecast only 2.5 percent for each of the two years. And for the emerging and developing countries, we forecast 6.5 percent for each of the next two years - so 4.5, 2.5, 6.5." The fastest growth in recent years has come from emerging markets like China, Brazil and India. Blanchard said advanced and developing countries had to take different perspectives towards their economic growth. [Olivier Blanchard, IMF Economic Counselor and Research Director]: "For the recovery to be sustained, advanced countries must achieve fiscal consolidation. To do so, and to maintain growth, they need to rely on increased external demand. Symmetrically, emerging market countries must rely less on external demand and more on domestic demand." The chief economist said it was too early to judge the effectiveness of difficult measures to stabilize economies taken by countries such as Ireland, Greece and Portugal. [Olivier Blanchard, IMF Economic Counselor and Research Director]: "I think it is very important to realize that Ireland, Greece, Portugal have very difficult macro and fiscal adjustment to make, which is going to take many years, and that you don't want to judge whether it's working or not just after six months, or after a year. You have to give time to time. In the best of cases, this will take a long, long amount of time." The IMF's central scenario continues to be one of a slow-paced global economic recovery. However, among the dangers the fund sees are rising inflation and hard-to-control inflows of capital into emerging markets. High debt levels in rich nations, such as the United States, are also worrisome.