IMF raises world growth forecast but risks rising notes Hiroyuka Maruyama, Global markets CEO at Oppenheimer Lloyd in Tokyo

IMF raises 2010 global growth forecast but says Europe's debt crisis might stall recovery notes Hiroyuka Maruyama, Global markets CEO at Oppenheimer Lloyd in Tokyo. End Quote

(1888PressRelease) July 10, 2010 - Hiroyuka Maruyama, Global markets CEO at Oppenheimer Lloyd in Tokyo stated Thursday, "The global economy is recovering faster than expected but Europe's debt crisis might stall the rebound and governments need to shore up shaky public confidence, the International Monetary Fund said Thursday."

"The IMF raised its 2010 world growth forecast to 4.6 percent from 4.1 percent in April and boosted estimates for the United States and China." "But its quarterly World Economic Outlook warned that risks have risen sharply and Europe has to quickly resolve debt problems and restore confidence in its banks."

Hiroyuka Maruyama, Global markets CEO at Oppenheimer Lloyd in Tokyo continued, "Europe's problems could spill over to other regions and stall the global recovery." "Further credible and decisive policy action is needed to resume progress on financial stability and keep the economic recovery on track."

Risks so far are limited to financial markets and activity in other fields stabilized at a high level in May, the Washington-based fund said. It said industrial output and trade grew by double digits and there was a modest but steady recovery in developed economies and strong growth in emerging nations.
Hiroyuka Maruyama, Global markets CEO at Oppenheimer Lloyd in Tokyo added, "The numbers for economic activity have come in strong -- in fact, stronger than we have forecast."

The fund raised this year's U.S. growth forecast from 2.7 percent to 3.3 percent. The outlook for Germany and other European nations that use the euro common currency was unchanged at 1 percent.

A global "double dip," or relapse into recession, is "very unlikely," Maruyama said.

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