Global economic recovery will continue, IMF says (by Greg Robb)
WASHINGTON (MarketWatch) -- The world economic recovery is set to continue over the next two years and will not be derailed by the earthquake in Japan or the surge in commodity prices, according to the latest World Economic Outlook released by the International Monetary Fund on Monday. The "two-speed" global recovery remains firmly in place, with advanced economies lagging behind emerging and developing market economies. Advanced countries are likely to grow at about a 2.5% rate over the next year while the emerging economies expand at a much higher 6.5% rate. The U.S. must reduce its deficit to stem the risk of "globally destabilizing changes in bond markets," the report said. The European Union must take steps to create greater trust in its banking sector through stress tests, restructuring and recapitalization programs.