IMF to raise world economic growth forecast: paper

The International Monetary Fund will raise its 2010 growth forecast for the world economy to 3.1 %t from 2.5 % to reflect improving economic conditions, a newspaper reported today.
Citing unidentified sources at the IMF and the German government, German business daily Handelsblatt said the IMF had revised its global forecast for this year to a 1.1 % contraction from a negative 1.4 % before.
“The data is pointing upwards on a weekly basis,” it quoted one of the sources as saying. The IMF is due to update its forecasts in its World Economic Outlook to be released in Istanbul tomorrow.
The Handelsblatt also said the IMF had raised its forecasts for Germany’s gross domestic product to grow by 0.3 % next year after previously predicting a 0.6 % contraction.
Output in Europe’s biggest economy would shrink by 5.3 % this year, less severely than the IMF’s previous forecast of a 6.2 % decline, the newspaper said.