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The IMF estimates that the economic recovery in 2010 will be stronger than previously anticipated. According to estimates by the IMF, the world economy will rise 2.5% in 2010, instead of 1.9% as previously anticipated in April.
However the estimate for 2009 was revised downward: -1.4% drop, as opposed to April"s prediction of -1.3%.
The revision of the prediction for 2010 is based on "the stabilization of the financial system", namely a slowdown in the shrinking of the world"s economies.
Still, the IMF warns that recovery will be sluggish and urged for making the recovery of the international banking system a priority.
"The global economy is still in a recession, but we are headed towards a recovery", IMF Research Director Olivier Blanchard said. "We must continue with the current fiscal monetary and financial policies that were enacted as part of the current context".
The IMF expects emerging and developing countries to grow 4.7% in 2010, having upgraded the previous estimate by 0.7%. For 2009, the IMF expects a 1.5% growth for these economies, less than the previously estimated 1.6%.
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