IMF predicts global growth, but cautions against borrowing

THE International Monetary Fund (IMF) has raised its global growth projection for the year to 4.2 per cent, up 0.3 per cent over a previous annual estimate it made in January.

Asia, the organisation said, would witness the bulk of the increase, with China to lead the charge with a 10 per cent GDP rise for the year, and India to follow closely behind with an 8.8 per cent increase.

US growth meanwhile would likely outpace that of Europe or Japan, the IMF said.

On global container shipments - traditionally seen as a leading indicator for GDP growth - the Journal of Commerce noted that volume had increased by three times more than GDP rates for close to three decades, but that most economists had forecast significantly lower multiples for the next few years.

The IMF also said the outlook would continue uncertain due to fiscal risks, such as over-borrowing by governments, sustained unemployment and the absence of sound financial regulations.

(Source: www.schednet.com)