The IMF sees global economic growth of 4.25%in 2010 and next, faster than previously expected.
At a meeting of officials from finance ministries in the Americas, International Monetary Fund Managing Director Dominique Strauss-Kahn said that reducing fiscal vulnerabilities of advanced economies was crucial.
He said that "As recent events in Europe have reminded us, the dark clouds have not yet passed referring to fiscal woes in Greece and Spain that have rattled financial markets.”
In his prepared remarks, the IMF chief also encouraged hard- harging emerging markets to begin withdrawing fiscal and monetary stimulus they injected into their economies during the height of the global crisis.
He said that "In emerging markets, including in Latin America and the Caribbean, the concerns are a bit different. With the recovery more advanced, a natural starting point would be to remove temporary fiscal stimulus. Fiscal correction can take some heat off monetary tightening, which in turn can dampen excessive capital inflows."