WASHINGTON – The global economy will likely strengthen the rest of this year and in 2011 as China and other emerging powers offset weakness in the United States and Europe.
That's the latest outlook of the International Monetary Fund, which predicts the world economy will expand 4.8 percent this year and 4.2 percent next year. That would far surpass last year's 0.6 percent decline, the worst since World War II. The IMF's forecast for worldwide growth this year is 0.2 percentage point more than its previous estimate in July.
The international lending agency predicts the U.S. economy will grow 2.6 percent this year, below the previous estimate of 3.3 percent, and 2.3 percent next year. Its forecast points to lingering weakness in the United States and Europe after the recession.