The IMF today published its latest World Economic Outlook. According to Chief Economist, Oliver Blanchard, the world economy has been on a rollercoaster these past six months. Recent market jitters over Spain, and collective schizophrenia between growth and austerity, would suggest that we have just come over the crest of a peak rather than having reached the end of the ride.
Upgrades to growth forecasts for several economic regions are welcome, but risks of derailment continue to clutter the path ahead. Europe’s economy is expected to contract in 2012, while a spike in oil prices and a Chinese slowdown also pose downside risks to global growth.