The IMF has just published its latest forecast for the global economy, the World Economic Outlook. After a deep recession, global economic growth has turned positive, driven by wide-ranging, coordinated public intervention that has supported demand and reduced uncertainty and systemic risk in financial markets, according to the report.
“The recovery has started. Financial markets are healing,” says IMF Chief Economist Olivier Blanchard. But he warned the recovery will be slow. “The current numbers shuld not fool governments into thinking that the crisis is over,” he said.
The Fund also published its Global Financial Stability Report. It also sees a recovery, but much more needs to be done to heal the international financial system, including repairing bank balance sheets. Read the IMF Survey story.
Filed under: Economic Crisis, Financial Crisis, IMF Tagged: | capital markets, Fiscal Stimulus, Global Financial Stability Report, IMF forecast, recovery, World Economic Outlook
Hi,
Thought you might be interested in some recent research a couple colleagues and myself recently published at Brookings, which digs into the WEO database to analyze the state of the global recovery. Of particular interest is the disconnect in many countries between the high growth of 03-07 and the rather bleak 2010-14 forecast, and what the political economy effects of such a change might be.
http://www.brookings.edu/reports/2009/10_financial_crisis_linn.aspx