The International Monetary Fund has said the world economy will expand 4.8 percent this year but will slow down a bit next year.
IMF chief economist Olivier Blanchard has said emerging nations will be behind most of the recovery, helping the rest of the globe escape the global financial crisis.
The IMF economist said the wealthier nations would need to cut budget deficits before next year's slowdown.
He claimed emerging nation economies would expand by a bit more than seven percent this year, while developed nations could expect to grow just 2.7 percent in an uneven and fragile comeback.
Blanchard warned that it is necessary for governments to show that they have a clear path out of debt, with faster and stronger action to reform the financial system.
He said severe problems in banks and other major financial firms were a major reason for the current financial crisis.
- Malaysia Sun |