IMF wants to revise forecasts for the global economy, are we nearer to recovery?

On Friday IMF First Deputy Managing Director John Lipsky said that the fund plans to revise its 2010 growth forecast for the world economy up with signs the rate of decline in global output has moderated. The statement by the IMF top official was made at the Turkish business conference in this southern Turkish resort.

"While the latest data point to a slowing of the global contraction, there is still great uncertainty regarding the timing and pace of economic recovery," he said in prepared remarks to the Turkish Industrialists' and Businessmen's Association.

Still, Lipsky noted that there are signs of easing in the rate of output decline. He also mentioned improvements in financial conditions and confidence recovery as well as better indicators of future production and demand. Taking into consideration these facts Lipsky said: "I expect that in the coming weeks we will revise our growth projections modestly upward, mainly with regard to 2010.”

The updated forecasts for the world economy are scheduled for release on July 7 in Washington. In its previous forecast in April, the Fund projected the world economy would contract 1.3 percent this year in the deepest recession since World War Two and then rebound to grow at 1.9 percent next year.