The International Monetary Fund (IMF) yesterday (Tuesday) raised its 2011 global economic forecast based on strong growth in emerging markets and stronger U.S. output fueled by tax-cut extensions.
The world economy will expand by 4.4%, more than the 4.2% the IMF projected in October, while growth in 2012 is expected to be 4.5%, unchanged from October, the agency said in an update to its World Economic Outlook report.
But even though the world's economies continue to recover, stubborn unemployment in developed countries, along with risks posed by sovereign debt and the financial sector in Europe, could threaten global stability, the IMF said.
"The world economy is recovering, but it is a two-speed recovery," IMF chief economist Olivier Blanchard said in comments posted on the fund's website. "Our forecast is that next year growth will be roughly the same as this year. That's not going to be able to make a big dent to unemployment."