caveats to an upbeat outlook

·         released twice a year

·         world GDP to grow at 4.4% in 2011 and 4.5 % in 2012

·         Develoepd countries @ 2.4% and 2.6%

·         Developing countries @ 6.5% in both years

·         India at 8.2% in 2011

Key points

·         Many developing economies are now growing at pre crisis rates

·         Developed economies still recovering

·         In early phase of recovery, growth powered by India and China . but now the growth is more broad based

CHALLENGES

·         Two paced growth makes it difficult for countries to coordinate on global issues

·         Weak sovereign balance sheets

·         Ultra soft monetary policies in develoepd economies may lead to destabilising capital flows into emergin economies

·         Rising food prices