Dynamics of global growth shifting: IMF
7 Sept 2013 4:32 AM IST
The International Monetary Fund has said that it sees the dynamics of global growth shifting, with the major economies strengthening while developing countries slow.
The international lending agency released the assessment in advance of the Group of 20 summit of the world's largest economies, set for later this week in Russia. The IMF forecast global growth will accelerate in 2014 compared to this year.It predicted the US will be the main driver of global growth in the near term, as private demand, housing and labor markets all strengthen. European and Japanese economies recovering from a slump will also contribute.
Europe has just started to pull out of six quarters of contraction with a small expansion in the second quarter. However Japan is expected to slow in 2014.
The forecast is a departure from IMF assessments earlier this year that saw developing economies such as China, India and Brazil as the drivers of the global economy this year. But the IMF notes those developing countries have been hardest hit in the past few months by the US central bank's warning that it will soon taper its massive bond-buying program that poured cash into the economy to stimulate it.
The international lending agency released the assessment in advance of the Group of 20 summit of the world's largest economies, set for later this week in Russia. The IMF forecast global growth will accelerate in 2014 compared to this year.It predicted the US will be the main driver of global growth in the near term, as private demand, housing and labor markets all strengthen. European and Japanese economies recovering from a slump will also contribute.
Europe has just started to pull out of six quarters of contraction with a small expansion in the second quarter. However Japan is expected to slow in 2014.
The forecast is a departure from IMF assessments earlier this year that saw developing economies such as China, India and Brazil as the drivers of the global economy this year. But the IMF notes those developing countries have been hardest hit in the past few months by the US central bank's warning that it will soon taper its massive bond-buying program that poured cash into the economy to stimulate it.
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