Global growth is slowly improving as recovery in the United States gains traction and dangers from Europe recede, but risks remain elevated and the gains are very fragile, the International Monetary Fund said on Tuesday, reports Reuters.
Another flare-up of the euro-zone sovereign debt crisis or sharp escalation in oil prices on geopolitical uncertainty could easily undermine confidence and disrupt the improving growth path for world economy, the IMF said.
"With the passing of the crisis and some good news about the U.S. economy, some optimism has returned. It should remain tempered," said Oliver Blanchard, the IMF's chief economist, in the latest World Economic Outlook.
"Even absent another European crisis, most advanced economies still face major brakes on growth. And the risk of another crisis is still very much present and could well affect both advanced and emerging economies," he said.
The global economy is on track to expand this year by 3.5 percent and by 4.1 percent in 2013, up slightly from 3.3 percent and 3.9 percent GDP output respectively that the IMF had forecast in January. nepalnews.com