THE IMF latest Study has shown that the global growth will strengthen gradually in 2013, as the constraints on economic activity start to ease this year but the recovery is slow thus, stressing that policies should address downside risks to bolster growth.

The report observed that economic conditions improved slightly in the third quarter of 2012, driven by performance in emerging market economies and the United States. The policy actions have mitigated acute crisis risks in the euro area and the United States, Japan's stimulus plans will help boost growth in the near term, pulling the country out of a short-lived recession. Financial conditions also improved, as borrowing costs for countries in the euro area periphery fell, and recovery in the United States remains largely on track. It said that the global growth is projected to strengthen to 3.5 percent this year, from 3.2 percent in 2012 a downward revision of just 0.1 percentage point compared with the October 2012 WEO.

The report revealed that though the policy actions have reduced risks and improved financial conditions for governments and banks in the periphery economies, those had not yet translated into improved borrowing conditions for the private sector.