The International Monetary Fund says the global economy has recovered from recession more quickly than anticipated.
The IMF said emerging countries are leading the upturn with their economies expected to grow nearly three times as fast as those of developed nations.
In its latest World Economic Outlook the IMF’s forecast for global growth this year has been nudged up to 4.2 percent. Back in January the IMF was predicting growth of 3.9 percent.
Its forecast for next year is unchanged at 4.3 percent growth.
There is a strong warning from the IMF’s experts that country’s have to “urgently” get their public debt under control.
It believes the trillions spent in emergency rescue efforts have worsened public finances, leaving countries vulnerable to new shocks.
That has been illustrated by Greece’s intensifying fiscal problems and the IMF said that other countries will have to follow the same route with tax increases and spending cuts.
The euro zone can expect weak growth this year and next of around one percent.
The prediction is that only Greece’s economy will still be shrinking in 2011 as the region emerges from the recession.