June 27, 2007 | posted by Michael Baxter in IABN |

Talking of the global economy, the IMF has been making its latest pronouncements. It’s difficult to know whether to celebrate or commiserate. Maybe it’s best to compromise. Keep the Bolly in the fridge, and crack open the Cava instead.

“Global growth is stronger than we had expected in April” said Simon Johnson, the IMF’s economic counsellor yesterday.”

Recently the IMF predicted global economic growth of 4.9 per cent this year and next, and although it is not due to make further predictions until October, it seems likely it will up the estimate.

But, alas, Mr Johnson also said, “Inflationary pressures are definitely building up.”

In a way, those comments say it all. Yes, the economy is booming, but NICE is over. We can no longer look forward to non-inflationary consistently expansionary growth, but then again we have not reached corrections, recession and paybacks either.