IMF sees ‘optimism return’ as faster growth predicted

The IMF revised world economic growth for 2012 to 3.5 per cent, up from its previous forecast of 3.3 per cent reports The BBC.

It also expects the UK to grow faster this year, by 0.8 per cent rather than 0.6 per cent.

But the IMF noted another eurozone crisis was possible and that most major economies “still face major brakes on growth”.

The eurozone recently agreed a second multi-billion-euro bailout for Greece, making a default of the country less likely, and has created a permanent rescue fund, hoping to contain a crisis that has dragged on for years.

Separately, the US unemployment rate has fallen to 8.2 per cent, the lowest rate since 2009, raising hopes for a recovery in the world’s largest economy.

“With the passing of the crisis, and some good news about the US economy, some optimism has returned,” the IMF said.

But it added the “risk of another crisis is still very much present”.

As if to underline that point, Spain is the only eurozone country whose growth has been revised even lower for 2012.