IMF Boosts World Economic Growth Projection

The International Monetary Fund boosted its forecast for global economic growth this year, reflecting stronger U.S. output based on tax-cut extensions and higher growth in emerging economies, Bloomberg reported Tuesday.

The world economy will grow 4.4% this year, more than the 4.2% the group projected in October, Bloomberg said.

Expansion next year is projected to reach 4.5%, unchanged from the October estimate, IMF said in an update to its World Economic Outlook report.

“The world economy is recovering, but it is a two-speed recovery,” Chief Economist Olivier Blanchard said in comments posted on IMF’s website. “Our forecast is that next year growth will be roughly the same as this year . . . [and] that’s not going to be able to make a big dent to unemployment.”

The IMF in a separate report said that financial conditions have improved, with both equity markets and commodity prices rising, Bloomberg reported.

The group also raised its global growth estimate for 2010 to 5% — the fastest pace since 2007 — from its 4.8% estimate in October.