The IMF has released a new world economic outlook. They have increased their forecasted global GDP growth by 0.2% for 2012 and 2013. They have indicated that the world economic recovery is fragile and problems in Europe or a sharp increase in oil prices could reduce the forecasted growth.
The new IMF global economy forecast is 3.5% GDP growth in 2012 and by 4.1% in 2013, up slightly from 3.3 percent and 3.9 per cent GDP output respectively that the IMF had forecast in January, when market concern was rampant that Greece could default and Italy and Spain were facing budget crises. India is forecast to expand 6.9 per cent in 2012 and 7.3 per cent next year, growing slightly below the revised forecasts of January as a result of weak demand and higher interest rates. China growth forecasts made by the IMF are unchanged at 8.2 per cent this year and 8.8 per cent in 2013.
Should the euro zone crisis erupt once more, it could trigger a widespread dumping of risky assets and rob 2 percent from global growth over two years and 3.5 percent from the euro zone, the IMF warned.
Additionally, a 50 per cent increase in the price of oil on would lower global output by 1.25 percent, the IMF said.
They have new nominal GDP forecasts out to 2017.
Purchasing Power Parity GDP forecast to 2017