Global growth for 2006 at higher rate than previous estimates
05 Jun '06
1 min read
In April, in its twice-yearly World Economic Outlook, the International Monetary Fund (IMF) forecast strengthening global growth for 2006 at a higher rate than previous estimates; predictions for 2007 were also boosted.
The IMF said the current expansion was becoming increasingly broad-based.
The US is set to remain the engine of economic growth, the European Union area is expected to strengthen moderately this year, and relatively strong growth in Japan is expected to continue virtually unchanged.
But China, India and Russia remain the stand-outs. China's economy is expected to continue growing this year and next (although there have been some recent rumblings that the Chinese economy may overheat).
The IMF's forecasts for developed economies are supported by latest trends in the OECD's composite leading indicators (CLIs).
The CLI has a strong historic correlation with the trends in wool prices 9 months down the track and the May data highlight strengthening growth performances in all of the major OECD economies (OECD excludes China).
marketing@alchempro.com
