Thursday, 7 October 2010

IMF projects 4.8 percent world growth in 2010

The IMF has released its World Economic Outlook for October. Bloomberg reports:

The world economy will expand 4.2 percent next year, the Washington-based IMF said in a report, down from its forecast of 4.3 percent three months ago. The fund projects growth of 4.8 percent this year, up from 4.6 percent...

Nations such as China and Brazil are powering the return to growth, widening a gap with advanced economies from Europe to the U.S. that are struggling to revive domestic demand, the IMF said. Developing nations will grow 6.4 percent next year, unchanged from the previous forecast, while advanced economies will expand 2.2 percent, down from an earlier 2.4 percent forecast, the IMF said.

Meanwhile, the AFP report on Wednesday shows that the US economy continues to be held back by poor employment growth. From Bloomberg:

Companies in the U.S. unexpectedly cut jobs in September, data from a private report based on payrolls showed today.

Employment decreased by 39,000, the biggest drop since January, after a revised 10,000 rise in August, according to figures from ADP Employer Services. The median estimate of 37 economists surveyed by Bloomberg News called for a 20,000 gain. Forecasts ranged from a decline of 44,000 to a 75,000 increase.

In contrast, the German economy seems to be doing well enough. Again from Bloomberg:

German factory orders increased almost four times the pace economists forecast in August, led by demand for investment goods such as machinery.

Orders, adjusted for seasonal swings and inflation, jumped 3.4 percent from July, when they dropped a revised 1.6 percent, the Economy Ministry in Berlin said today. Economists forecast a 0.9 percent gain, according to the median of 36 estimates in a Bloomberg News survey. From a year earlier, orders climbed 20.3 percent, when adjusted for working days.

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