The International Monetary Fund is more optimistic about the global economy, according to its latest World Economic Outlook report. The IMF has hailed positive signs in the US and European efforts to address the debt crisis. Meanwhile, G20 leaders have agreed to nearly double the resources available to the IMF, bringing the fund to some US$1 trillion in lending capacity.
IMF World Economic Outlook
The new report says "some optimism has returned" to the global economy. The Fund has revised expected world economic growth for 2012 to 3.5 percent, up from its previous forecast of 3.3 percent. The threat of a global slowdown has eased following improved economic activity in the US and better policies in the euro area.
But improvements are fragile, and the IMF warns policymakers must still calibrate policies to support growth in the near term and must implement fundamental changes to achieve healthy growth in the medium term.
Full Report: World Economic Outlook (WEO) [IMF, 17 April 2012]
G20 Doubles IMF War Chest
The report comes amid the spring meetings of the World Bank group in Washington, and a meeting of G20 ministers. At the G20 summit, leaders agreed to double the IMF's resources.
Ahead of the G20 meeting, Sweden and Denmark have pledged a total of US$77 billion to help contain the Eurozone's debt crisis, and encouraged other countries to follow suit.
According to the IMF, countries at the G20 meeting agreed to contribute more than US$430 billion in additional funding to guard against global risks. The IMF now estimates it has some US$1 trillion in lending capacity.
Report: IMF doubles lending capacity [CNN, 20 April 2012]