IMF revise global growth forecast
At a press conference in Nairobi, Christine Lagarde, Managing Director of the IMF announced that the International Monetary Fund will be raising its global growth forecast.
Last October the IMF lowered their growth forecasts after the full effect of the global economic and financial problems made their impact and it became clear that growth progress would be severely hampered. The 2014 projection was cut to 3.6% and the 2013 growth estimate to 2.9%.
Following a period of strong recovery in the global economy the IMF has announced a more positive outlook, reflected in the forecast revision. The annualised rate of GDP growth between July and September last year was 4.1%, 0.5% above its estimated peak.
The U.S Commerce department raised its own domestic growth forecasts to the highest since 2011. U.S President Barack Obama said that 2014 will be a “breakthrough year” for the US economy. Projections for the UK economy were also increased.
Developed countries like the U.S and U.K have balanced out the slower pace of emerging economies like China, India and Brazil by performing so well in their economic recovery.
The Office for National Statistics (ONS) increased its annual growth forecast from 1.5% to 1.9%. The revision is expected to be made within the next couple of weeks.