IMF says world economy menaced by US taper and eurozone deflation


The global economy is on the mend in line with expectations, according to the IMF's latest World Economic Outlook (WEO), but could yet be destabilised by the tapering of US monetary policy, while the eurozone is facing the danger of deflation.

In the annual report, released today, the IMF said it expected the US economy to grow this year by 2.8%, compared with 1.9% last year, and the Federal Reserve to raise its policy interest rate in 2015.

It also had a broadly positive prognosis for the

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