The International Monetary Fund released its latest semi-annual World Economic Outlook and raised its forecast for global GDP growth in 2006 to 4.9%. The fund also slightly raised its growth forecasts for the United States and the euro area (to 3.4% and 2.0% respectively), but expects China’s GDP to grow by 9.5% this year, up from the forecast of 8.2% it made last September.
In 2006 all of the emerging economies that we track each week could enjoy faster GDP growth than America, Japan or the euro area, according to the IMF’s latest forecasts. Even this year’s laggards, Brazil and Mexico, are expected to grow by 3.5%. China is again tipped to be the fastest-expanding economy this year and next, with average growth of 9.3%, followed by India at 7.2%.