Global economy to grow 3.3-pct led by US, emerging economies: IMF

Apr 17, 2013 (LBO) - The global economy will grow 3.





3 percent in 2013 with the United States growing 1.9 percent, emerging and developing nations growing 5.

3 percent and the Euro area contracting 0.


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3 percent, the International Monetary Fund has said. "What was until now a two-speed recovery, strong in emerging market and developing economies but weaker in advanced economies, is becoming a three-speed recovery," IMF economic counsellor Olivier Blanchard said in the agency's April World Economic Outlook.

"Emerging market and developing economies are still going strong, but in advanced economies, there appears to be a growing bifurcation between the United States on one hand and the euro area on the other."

The US had achieved fiscal consolidation of 1.8 percent of gross domestic product.

Fiscally conservative Germany will grow 0.

6 percent improving to 1.5 percent in 2014.

Estonia, among countries that cut state spending most is expected to grow 3.

0 percent, the fastest in the Euro area, after growing 4.

2 percent in 2012.

"Most euro area periphery countries, notably Italy and Spain, are expected to have substantial contractions in 2013," Blanchard said.

"The process of internal devaluation is slowly taking place, and mo