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The IMF Upgrades World Growth for 2014 to 3.7%

The world economy will grow by more than previously expected this year, the International Monetary Fund (IMF) forecast on Tuesday.

In an update to its “World Economic Outlook”, the IMF predicted global economic growth of 3.7 percent in 2014, an upgrade on the 3.6 percent growth it forecast last October.

“The IMF — which monitors the global economy and lends to its 188 member countries if they are in financial difficulty — attributed the raise to improving conditions in advanced economies.

(CNBC Explains: IMF)

“Financial conditions in advanced economies have eased since the release of the October 2013 WEO (World Economic Outlook) — with little change since the announcement by the U.S. Federal Reserve on December 18 that it will begintapering its quantitative easing measures this month. This includes further declines in risk premiums on government debt of crisis-hit euro area economies,” the IMF said on Tuesday.

Yoshikazu Tsuno | AFP | Getty Images
Shipping containers are unloaded from an international freighter while another cargo ship (R) arrives at the international cargo terminal in Tokyo on October 21, 2013.

Japan and Spain saw their outlooks upgraded by the IMF on Tuesday, and are now seen growing by 0.6 percent and 1.7 percent respectively in 2014.

The U.K.‘s growth forecast was also increased, a move widely anticipated by the country’s media.

“Activity in the United Kingdom has been buoyed by easier credit conditions and increased confidence. Growth is expected to average 2.25 percent in 2014–15, but economic slack will remain high,” the IMF said….”

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