IMF Predicts Modest Global Economic Growth This Year

The International Monetary Fund says global economic growth will strengthen gradually this year.

Wednesday's report from the IMF says global growth will hit 3.5 percent in 2013, which is three-tenths of a percent better than last year.

But IMF experts warn that "downside risks" are "significant," including stagnation in Europe, or what they call "excessive" short-term cuts to government spending in the United States.

The report urges Washington to reach agreements on debt issues, and work out ways to reduce spending in the "medium term."

The report predicts the United States will grow a modest two percent this year, while the economies of developing nations are expected to expand 5.5 percent. The economies of the nations that use the euro are predicted to shrink slightly this year.