The latest six monthly world economic outlook report from the International Monetary Fund (IMF) predicts global growth of 3.5% for 2015 and almost 4% for 2016.
The IMF cites falling oil prices and the easing of austerity programs in Europe as key factors in the improved forecast.
While the outlook is essentially positive, the organization emphasized that the lack of a sustainable recovery post-2008, had left global growth at the mercy of “complex forces” such as imploding commodity prices and fluctuating exchange rates.
Growing debt in many developed countries, and the aging population in Europe, Japan and the United States was also hindering “productive capacity” around the world, said an IMF spokesperson.
Earlier this week, the World Trade Organization (WTO) revised its global trade growth forecasts from 4% for 2015, down to 3.3%. According to a spokesperson trade growth for 2014 fell well below the WTO prediction of 3.1%, coming out at only 2.8%.