Economic growth will be insignificant in 2011
The world economy will grow 4.4 percent, more than the 4.2 percent expected in October, International Monetary Fund (IMF) reported.
According to the Armenian Central Bank, the IMF raised its forecast for global economic growth this year. In 2011, inflation will continue totaling 1.6% and 6.0% in developed and developing countries respectively. The global economic growth will be determined by developed countries.
Estimates for the euro area were unchanged at 1.5 percent for 2011 against 1.8% in 2010.
"In advanced economies, activity has moderated less than expected, but growth remains subdued. In many emerging economies, activity remains buoyant, inflation pressures are emerging, and there are now signs of overheating, driven in part by strong capital inflows," reads the IMF report.
The institution also noted that financial conditions have improved, with equity markets and commodity prices rising.
Regarding the hike in commodities prices, IMF said that the prices will be the same as in 2010.
Oil prices will go up
The price of oil hit USD 98 per barrel on 31 January 2011 for the first time in over two years.
"Stronger oil demand from rebounding economies and concern over unrest in Arab countries have pushed crude prices about $100 a barrel, the International Energy Agency (IEA) reported.
According to the IEA the oil prices will be the same in 2011 as at the end of 2010.
The prices of products and precious metals are also expected to increase in 2011.
