MercoPress. South Atlantic News Agency

IMF optimistic about world growth.

The International Monetary Fund, IMF, raised world growth estimate above the original 4,6% forecast and asked country members of APEC (Asia-Pacific Economic Cooperation) to advance in the implementation of “flexible exchange rate” systems.

"We're seeing a robust recovery this year, above the 4,6% anticipated last April, and we also see this recovery extending to next year very much in the range of the April estimate", said IMF Managing Director Rodrigo de Rato currently in Chile for the eleventh APEC Finance ministers meeting.

Mr. Rato added that there's "a general recovery in all economies" including Japan which has been stagnant for over a decade.

The positive elements of the recovery reflect an increase in overall demand, investment and technology sectors, but Mr. Rato also warned about some risks related to balance of payments distortions and the ageing of population in advanced countries.

Further on Mr. Rato identified United States and Asia as the engines of the current recovery. However he stressed that the US government must address the double misbalance it currently faces, internationally and fiscally.

Regarding Asia the IMF Managing Director asked APEC member countries to advance in making exchange rates more flexible.

"At this moment given the evolution of the exchange rate regimes it's highly recommendable that countries begin adopting more flexible regimes which can help in absorbing external shocks".

As to the Chilean proposal of converting the Asia-Pacific into a free trade area, Mr. Rato warned that regional agreements should not "contradict" global agreements.

"The world will benefit greatly if regional agreements contribute to the existence of a global framework of free trade and a clear rules system for solving conflicts".

Mr. Rato also praised the performance of the Chilean and Peruvian economies.

"Chile can be certain to achieve 5% expansion this year", said the IMF chief who underlined the country impressive track record of fostering growth and a commitment to strong institutions.

"The authorities have put in place a successful inflation targeting framework to anchor monetary policy and a credible structural balance rule to guide fiscal policy. These two pillars have been essential for Chile's economic stability, with deep financial markets helping to sustain economic growth. The authorities have also put in place several free trade arrangements in the past year, including those with the United States and the EU, underscoring this country's commitment to free trade".

Regarding Peru Mr. Rato remarked the country is involved in a great macroeconomic effort, which has helped to expand the fiscal base and address essential structural reforms.