The world economy will grow by more than previously expected this year, the International Monetary Fund (IMF) forecast on Tuesday.
In an update to its “World Economic Outlook”, the IMF predicted global economic growth of 3.7 percent in 2014, an upgrade on the 3.6 percent growth it forecast last October.
The IMF — which monitors the global economy and lends to its 188 member countries if they are in financial difficulty — attributed the raise to improving conditions in advanced economies.
“Financial conditions in advanced economies have eased since the release of the October 2013 WEO (World Economic Outlook) — with little change since the announcement by the U.S. Federal Reserve on December 18 that it will begin tapering its quantitative easing measures this month. This includes further declines in risk premiums on government debt of crisis-hit euro area economies,” the IMF said on Tuesday.