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The risk of a crash landing for the global economy has receded, the IMF’s chief economist said as the multilateral lender predicted 3 per cent growth this year.
In an interview with the Financial Times, Pierre-Olivier Gourinchas said the economic outlook had improved since the multilateral lender last published its projections in April amid a bout of banking sector stress.
“Things are moving in the right direction,” he said, adding there was now less danger of global growth slipping to 2 per cent or below, since the most acute financial risks had abated.
The IMF considers that the UK would now avoid recession, boosted by strong spending by consumers.
But Gourinchas cautioned that advanced and emerging economies were not “out of the woods yet”, since central banks’ efforts to temper stubbornly high inflation would…