IMF ups growth forecast

City A.M. Reporter
THE International Monetary Fund (IMF) has increased its predicted rate for next year&rsquo;s global economic expansion to slightly less than three per cent.<br />In July the IMF predicted the global economy would grow by 2.5 per cent in 2010, but has now improved its forecast.<br /><br />&ldquo;The recovery is for real but it is very heavily policy dependent,&rdquo; said senior IMF economist J&ouml;rg Decressin at a session at the Carnegie Endowment for International Peace.<br /><br />He said that private demand would have to replace the boost to the global economy from government monetary and fiscal expansion.<br /><br />The UK has this week agreed to provide the IMF with around $15.5bn (&pound;9.6bn) as part of the international effort to triple the fund&rsquo;s resources. The European Union aims to give $100bn to countries hit hardest by the world recession.