IMF to raise growth forecast - report

The International Monetary Fund will raise its 2010 growth forecast for the world economy to 3.1 per cent from 2

The International Monetary Fund will raise its 2010 growth forecast for the world economy to 3.1 per cent from 2.5 per cent to reflect improving economic conditions, a newspaper reported on Wednesday.

Citing unidentified sources at the IMF and the German government, German business daily Handelsblattsaid the IMF had revised its global forecast for this year to a 1.1 per cent contraction from a negative 1.4 per cent before.

"The data is pointing upwards on a weekly basis," it quoted one of the sources as saying. The IMF is due to update its forecasts in its World Economic Outlook to be released in Istanbul tomorrow.

The Handelsblattalso said the IMF had raised its forecasts for Germany's gross domestic product to grow by 0.3 per cent next year after previously predicting a 0.6 per cent contraction.

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Output in Europe's biggest economy would shrink by 5.3 per cent this year, less severely than the IMF's previous forecast of a 6.2 per cent decline, the newspaper said.

Reuters