Olivier Blanchard

Olivier Blanchard: The U.S. is providing a major impulse to global growth thats still lumbering amid weakness in Japan and parts of Europe, the IMF said in a report today. While the U.K. and Germany are adding to momentum, developing nations face new risks and Russias takeover of Crimea last month injects geopolitical tension thats casting a pall on the region, the fund said, according to Business Week. For the most part, the brakes are gone in the U.S., IMF chief economist Olivier Blanchard said in a video accompanying the World Economic Outlook report. The U.S. recovery is the strongest among advanced economies and therefore in a way its pulling the world and Stronger U.S. growth this year and next will help the world economy withstand weaker recoveries in emerging markets including Brazil and Russia, the International Monetary Fund said. The IMF urged emerging markets to prepare for flows of capital back to advanced economies, and advised the European Central Bank that more monetary easing is needed now to keep deflation at bay. The U.S. will benefit from a longer period of record-low interest rates orchestrated by the Federal Reserve, strong private demand and the end of a fiscal drag that slowed growth last year, it said. (news.financializer.com). As reported in the news.