Washington, DC, United States (4E) – The International Monetary Fund (IMF) said Tuesday in Washington that it predicts the world economy to grow by more than previously anticipated in 2014.
The global economy will expand 3.7 percent this year, which compared with the 3.6 percent initially estimated in October, according to the IMF in its revisions to its World Economic Outlook.
The IMF, which tracks the global economy and a lender to 188 member countries during financial difficulties, cited improving conditions in advanced economies as factors for the increase.
The report showed that gross domestic product (GDP) in the U.S. will grow 2.8 percent from a previous reading of 2.6 percent, while Japan will expand 1.7 percent from 1.2 percent, and the UK will rise 2.4 percent from 1.9 percent.
The IMF said the new risks to advanced economies include “very low inflation,” particularly in the euro zone, which could increase the prospect of declining longer-term inflation expectations.
China, the world’s second-biggest economy, is expected to post a GDP growth of 7.5 percent, faster than the 7.3 percent estimated in October, following last year’s 7.7 percent pace, the report said.
The IMF said advanced economies should not prematurely halt loose monetary policies, including in the United States, since this monetary policy accommodation is vital for growth.