International Monetary Fund Raises Growth Forecast

The International Monetary Fund says the world economy is pulling out of recession faster than previously thought.

IMF's "World Economic Outlook" report coverThe latest World Economic Outlook says the global economy will grow by 3.1 percent in 2010, after contracting about 1 percent in 2009.

That is better than the last update in July -- when the report predicted growth of 2.5 percent. The IMF credits efforts such as interest rate cuts and other stimulus programs.

But the IMF's chief economist says the improving numbers do not mean the economic crisis is over. Olivier Blanchard says nations around the world should coordinate policies to keep the recovery on track.

The study says growth in China, India, and other Asian countries is driving economic recovery in the developing world. In those nations, growth is expected to reach five percent next year.

The report came out Thursday ahead of the IMF and World Bank annual meetings being held in Istanbul, Turkey.