AS per UN-backed 'The 2012 World Economic
Outlook', published by the IMF, the prospects
for the global economy are slowly improving, but growth is expected to be
weak, especially in Europe. The Report adds that unemployment
in many advanced economies will stay high.
Global growth is forecasted to drop from close to 4 per cent in 2011 to about
3.5 per cent this year, picking up to 4.1 per cent next year, according to
the report, which comes ahead of the Spring Meetings of the IMF and the World
Bank in Washington D. C.
The
Fund has projected a “mild contraction” in the euro area, where concerns
about high sovereign debt and fiscal consolidation have taken a toll, although
Germany and France might see positive growth.
Japan, bouncing back from last year’s destructive earthquake and tsunami,
will see a recovery of 2 per cent, according to the forecast.
The
report called on governments to strengthen policies to solidify the weak
recovery and contain potential risks that can weigh on consumer and investor
confidence.
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