IMF upgrades global growth forecast warns of diverging rebound among economies – MENAFN.COM

IMF upgrades global growth forecast warns of diverging rebound among economies – MENAFN.COM

(MENAFN - Gulf Times) The International Monetary Fund upgraded its global economic growth forecast for the second time in three months, while warning about widening inequality and a divergence between advanced and lesser-developed economies. The global economy will expand 6% this year, up from the 5. 5% pace estimated in January, the IMF said in its World Economic Outlook published yesterday. That would be the most in four decades of data, coming after a 3. 3% contraction last year that was the worst peacetime decline since the Great Depression. The fund, which with the World Bank is holding its spring meetings virtually this week, underscored that policy makers should scale back government support 'gradually, to avoid 'fiscal cliffs. Central bankers should also give 'clear forward guidance on monetary policy to minimise the danger of disruptive capital flows. The IMF reiterated its call for wealthy nations to help poorer ones combat Covid-19, and underlined the need to prioritise healthcare spending more broadly to defeat the pandemic. President Joe Biden's $1. 9tn stimulus package passed last month will help boost US gross domestic product to above its pre-pandemic level this year and will have sizeable positive spillovers for trading partners. For 2022,