The global economy is recovering faster than expected, according to the International Monetary Fund (IMF).
World growth will bounce back from negative territory in 2009 to a forecast 3.9% this year and 4.3% in 2011, the IMF forecasts.
This represents an upward revision of 0.75% from its October 2009 prediction.
The optimistic analysis follows the news UK GDP rose in Q4 2009 by 0.1% to nudge Britain out of recession.
However, the IMF cautions the recovery is happening at different speeds around the world.
Emerging markets, led by Asia, are showing a relatively vigorous upturn, but advanced economies remain sluggish and dependent on government stimulus measures, says the IMF.
Olivier Blanchard, IMF chief economist, says: "For the moment, the recovery is very much based on policy decisions and policy actions. The question is when does private demand come and take over. Right now it's ok, but a year down the line, it will be a big question."
IMF managing director Dominique Strauss-Kahn has warned countries risk a return to recession if anti-crisis measures are withdrawn too soon.
In its Global Financial Stability Report, the IMF says financial markets have rebounded since the lows of last March.
But policymakers still face extraordinary challenges as they seek to unwind the unprecedented fiscal, monetary, and financial support, the report says.
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created