IMF to raise growth forecast

The International Monetary Fund’s Managing Director, Christine Lagarde, has stated the international fosterer of monetary cooperation will raise its global growth forecast.

The announcement was brief, with Lagarde only saying the revision to the forecast would come in the coming three weeks.

She stated it would be premature to say anything further.

Rocky past

It was only in October 2013 that the IMF decreased its growth forecasts, when it stated that the global economy was resting in a “low gear.”

The IMF therefore decreased its growth forecast for this year by a percentage point of 0.2 – making it 3.6%.

The same fate was handed to the growth forecast estimate for 2013, which was decreased by a percentage point of 0.3 – leaving it at 2.9%.

Back then, the IMF had warned that a slower than expected state of expansion in the emerging economies of Brazil, China and India held back a rapid global expansion.

Many economists across the world have been astonished at the new strength of the developed economies rebound.

Aid for Kenya

Lagarde’s comments were made at the conclusion to a visit to Nairobi, Kenya.

In total, the fund has lent around USD 750 million to the African country to support its reform, aid economic development, and better the government’s financial position.

On the conclusion to her visit Lagarde noted: “I congratulated President Kenyatta and his colleagues [namely, Central Bank Governor Ndung’u and Treasury Secretary Rotich] for the remarkable progress made over the last few years.”

“Kenya’s economic conditions have continued to improve thanks to a far-reaching reform agenda,” She continued.

“The external and fiscal positions are now stronger, inflation has been tamed, the economy has maintained solid growth.”

In her conclusion, she stated that the African country had attained its economic objectives which were supported by the IMF.

US economy ‘breakthrough’

Earlier last month, the US Commerce department – the cabinet charged with promoting economic growth in the country – reviewed the USA’s growth, and stated it was in the fastest pace of progress since late 2011.

It also noted the gross domestic product (GDP) had grew 4.1% between July and September.

The previous estimate set GDP at 3.6%.

These stronger growth figures, coupled with a reviewed American industry, led US President Barack Obama to state this year will the “breakthrough year” for America’s economy.

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