IMF predicts rise in economic growth

HANOI: The International Monetary Fund (IMF) has raised its projections for global economic growth in 2012 to 3.5 percent and in 2013 to 4.1 percent, higher than the previous estimate announced in January.

In its latest World Economic Outlook report (WEO), the IMF projected that China's economy is expected to grow by 8.2 percent this year and by 8.8 per cent next year, thanks to its strong investment and consumer spending.

The forecast is higher than the rate projected by Beijing, which had predicted growth at 7.5 percent, according to Vietnam news agency.

The report was released on Wednesday, ahead of a meeting between the executive heads of the IMF, the World Bank and financial analysts and economists from around the world. The talks are scheduled to begin in Washington this week.

According to the IMF, there is no economic overall recession in the Asian region, thanks to its robust domestic demand and flexible monetary policies.

While, efforts by Japan and Thailand to rebuild their economies after a series of devastating natural disasters will also help growth throughout the region.

Japan is expected to see a growth rate of 2 percent in 2012, slightly higher than the 1.7 percent recorded in 2011, it added.

The Fund also raised its forecast for the U.S. economy to 2.1 per cent in 2012 and 2.4 percent in 2013, from 1.8 and 2.2 percent in its previous projection.

It predicted that the Eurozone's economy would contract by 0.3 percent in 2012 but economic growth is expected to pick up again during 2013. Bernama