IMF says no recession in the UK

Updated forecasts in the IMF's World Economic Outlook (WEO) also raise inflation projections, particularly for emerging markets and developing countries.

The WEO expects a moderation in global growth from 5% in 2007 to 4.1% in 2008 and 3.9% in 2009. Following a better-than-expected performance in the early part of 2008, WEO projections for the United States, the euro area, and Japan show a slowdown in activity in the second half of 2008.

Expansions in emerging and developing economies are also expected to lose further steam, with growth in these countries projected to ease to around 7% in 2008-09 from 8% in 2007. China's growth rate is expected to ease from near 12% in 2007 to around 10% in 2008-09.

"The global economy is in a tough spot, caught between sharply slowing demand in many advanced economies and rising inflation everywhere, notably in emerging and developing economies," the WEO says.