The global economy is poised for a gradual upturn in 2013 as the constraints on growth gradually ease, but policy complacency should be guarded against as risks remain, the International Monetary Fund (IMF) said in its updated World Economic Outlook (WEO) on Wednesday.
The report observed that economic conditions improved modestly in the third quarter of 2012, driven by acceleration in emerging economies and the United States. Global financial conditions improved further in the fourth quarter of 2012 with sovereign spreads in weak euro area countries declined considerably.
However, in the euro area, the return to recovery after a protracted contraction is delayed, and Japan moved into recession in the second half of 2012, said the report.