The IMF lifted forecasts across the board due to the impact of action by several governments as well as signs of firmer house prices, recovering consumer confidence and a pick-up in world trade.
The UK will lag behind the 1.3 per cent growth expected for the US although it will perform more strongly than the Eurozone, where the IMF predicts a 0.3 per cent rise in output. Ben Bernanke, chairman of the US Federal Reserve, recently said it is highly likely the worldÃ¢â‚¬â„¢s biggest economy has already emerged from recession, though he cautioned that recovery will be slow. Yesterday, new figures revealed that US GDP fell by 0.7 per cent in the second quarter, lower than the 1 per cent previously reported and was also better than the 1.2 per cent contraction which Wall Street had expected.
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