The International Monetary Fund (IMF) has raised its projections for global economic growth in 2012 to 3.5% and in 2013 to 4.1%, 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% this year and by 8.8% next year, thanks to its strong investment and consumer spending.
The forecast is higher than the rate projected by Beijing itself, which had predicted growth at 7.5%.
According to the IMF, there is no economic overall recession in the Asian region, thanks to its robust domestic demand and flexible monetary policies. 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% in 2012, slightly higher than the 1.7% recorded in 2011, it added.
The Fund also raised its forecast for the US economy to 2.1% in 2012 and 2.4% in 2013, from 1.8 and 2.2% in its previous projection.
It predicted that the Eurozone’s economy would contract by 0.3% in 2012 but economic growth is expected to pick up again during 2013.
The report was released on April 17, 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.