IMF sees slow growth in 2011 for rich nations

A two-speed global recovery will extend into 2011, with developed countries growing slowly while emerging-market economies power ahead, the International Monetary Fund's chief economist predicted on Thursday. In an interview with the lender's online magazine, IMF Survey, Olivier Blanchard said the necessity for countries to rebalance their economies by letting exchange rates adjust more freely while taking steps to control debt remains vital.
"Without this global rebalancing, there will no healthy recovery," he said. The IMF has been calling for countries like the United States that relied on consumer spending for past growth to save and invest more, and for export-reliant countries like China to encourage more consumption at home.