***** Lagarde: IMF will raise its forecast for global growth .. Despite the pessimism of the World Bank

[ltr]January 10, 2014 12:23 Last Updated: January 10, 2014 12:23
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In October last year the World Bank cut its forecast for global growth, and said that the global economy «still moving slowly», but the Fund will raise its forecast for global growth, according to statements made by its director, Christine Lagarde. According to Al-Qabas newspaper

Lagarde said during a press conference in Nairobi that the Bank estimates that the new will come out within three weeks, but did not provide further details, adding that it is still too early to talk about it.

The World Bank cut its forecast for 2014 by 0.2 percentage points to 3.6 per cent when, and the bank has cut its estimate for growth in 2013 by 0.3 percentage points to 2.9 per cent when.

The World Bank warned in 2013 that the slower pace of growth in emerging economies such as Brazil, China and India would impede global growth.

Economists said the surprise recovery in the economy of the developed countries, particularly the United States and Britain.




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IMF Plans to Raise Global Economic Growth Forecast, Lagarde Says
By David Malingha Doya and Michael Heath Jan 7, 2014 9:42 PM MT



The International Monetary Fund will raise its forecast for world growth, Managing Director Christine Lagarde said, underscoring confidence in the global recovery as the outlook for the U.S. improves.

“We will be revising upwards the global forecast for economic growth” in about three weeks, Lagarde told reporters yesterday in the Kenyan capital of Nairobi.

A faster-than-expected expansion in the world economy contrasts with the outlook in October, when the IMF lowered its expectation for the pace of expansion for 2014.

Lagarde said in December the fund sees “a lot more certainty” for the U.S. economy this year.

The U.S. jobless rate, which fell to 7 percent in November from 7.3 percent in October, will keep declining as confidence increases that the economy is on a sustainable growth path, she said last month. The IMF currently forecasts global expansion of 3.6 percent this year.

Asian stocks climbed today for the first time this year. The Federal Reserve said Dec. 18 that it plans to trim its monthly bond purchases to $75 billion from $85 billion starting in January, taking the first step toward unwinding the unprecedented stimulus put in place by Chairman Ben S. Bernanke.

There may be knock-on effects for emerging nations as the recovery in advanced economies raises the threat of financial market turbulence, Lagarde said in a Jan. 6 speech to business leaders in Nairobi.

“As financial conditions in advanced economies normalize, the risk of heightened volatility in financial markets may create new challenges in emerging market economies,” Lagarde said.


http://www.bloomberg.com/news/2014-01-08/imf-plans-to-raise-global-economic-growth-forecast-lagarde-says.html