Emerging markets are propping up the global economy’s sluggish recovery according to the International Monetary Fund’s World Economic Outlook report.
It predicts China and other major emerging economies will grow nearly three times faster than rich nations next year.
China will be a driver of growth in many economies,
especially those that export raw materials which is one reason why Russia’s economy has picked up, with that trend set top continue.
By contrast the developed world faces what the IMF calls “subdued” prospects.
This year euro zone growth is forecast at just 1.7 percent falling to 1.5 percent in 2011.
In the US, growth should be 2.6 percent this year, slipping to 2.3 percent in 2011.
Russia will likely see four percent growth in 2010 and 4.3 percent next year.
India’s GDP is predicted to be 9.7 percent slipping to 8.4 percent in 2011
The Chinese economy will perform best the IMF thinks – at 10.5 percent in 2010 but cooling to 9.6 percent next year.
The IMF sees global economic growth slowing to 4.2 percent next year from this year’s 4.8 percent
The organisation’s economists said US growth will be much weaker this year and in 2011 than previously thought due to sluggish consumer spending, which will keep unemployment high.
The report was prepared for the annual meetings of the IMF and its sister lending organisation, the World Bank in Washington DC on Friday.