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IMF: World Economy Recovering Faster

Study says emerging economies, particularly China and some other Asian nations, will expand most rapidly

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Last updated on: January 25, 2010 7:00 PM

Experts at the International Monetary Fund say the global economy will grow about 3.9 percent this year, which is eight-tenths of a percentage point faster than their earlier predictions.

An IMF study published Tuesday says emerging economies will lead the recovery, with China and some other Asian nations expanding the most.

IMF experts say financial and political leaders around the world helped the recovery by slashing interest rates, and by spending vast sums on public works and other projects to boost demand.

The stimulus efforts have raised concerns about rapid price increases, but IMF experts say inflation appears to be in check for now. They warn that removing the stimulus too quickly or in an uncoordinated fashion could hurt the fledgling recovery.

The experts say emerging and developing economies will expand about six percent this year, which is nearly triple the 2009 growth rate.

China will lead the recovery with a 10 percent growth rate.

In contrast, wealthy nations are expected to grow a bit more than two percent in 2010. While the IMF calls that rate "sluggish," it is far better than the three-percent decline last year.

Some information for this report was provided by AP, AFP and Reuters.

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