The revival is led by emerging markets, especially those in Asia, whereas most of the advanced economies are witnessing sluggish recovery.
IMF Managing Director Dominique Strauss-Kahn has said the global economy is recovering significantly faster than expected, but growth in most advanced economies is still dependent on government stimulus measures and remains fragile.
He noted that while emerging market economies, mainly in Asia, are leading the recovery, many developed countries are still seeing weak private demand and rising job losses.
“We are not out of the woods until the private sector has recovered,” the IMF Chief said on Thursday. Further, Strauss-Kahn urged governments not to relax stimulus measures too early and instead, suggested that the same could shift stimulus measures toward projects that would create additional jobs.
According to the IMF, the recovery would take place in different countries at varying speeds. In October 2009, the multilateral lending agency forecast the world economy to grow 3.1 per cent in 2010.