The International Monetary Fund (IMF) has increased global growth forecast at 4.4%, higher than earlier forecast of 4.2%. At the same time, it has kept India’s GDP growth forecast same as before at 8.4% for 2011. It has also kept China’s GDP growth forecast as same as before 9.6%.
The IMF has also said that the increased global economy growth will be driven by the better than expected growth in US and Europe. It has also warned of higher inflation and higher global commodity prices through out the whole next year. Because of high inflation, interest rate will be increased in the emerging economies to control that, which may slowdown the economic growth further and reduce the economic activity in the next financial year 2012.