The International Monetary Fund (IMF) has said that it sees the dynamics of global growth shifting, with the major economies strengthening while developing countries slow.
In a report released just before this year’s G20 summit in Russia, the lending agency forecast that global growth will accelerate in 2014 and the US would be its main driver in the near term. European and Japanese economies recovering from a slump will also contribute although the latter is expected to slow down in 2014.
The forecast is a departure from its earlier assessment this year that identified emerging economies such as China, India and Brazil as the key players.
These countries have been hit hard the past few months by the US central bank’s plans of a bond-buying stimulus programme and result in their holding back of global growth.
The IMF said strengthened global action, stronger regulatory oversight and currency-markets intervention from emerging markets is needed to calm excessive volatility.