Retail in Asia

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Asia pens world growth story; euro debt crisis could play spoilsport

The International Monetary Fund (IMF) upgraded its 2010 global growth forecast on the back of robust expansion in Asia and renewed US private demand, but warned the euro zone’s debt crisis posed a big risk to recovery.

The IMF raised its 2010 world output forecast to 4.6 percent from 4.2 percent in April’s review of the global economy, but kept its 2011 view unchanged at 4.3 percent. It also said that persistent weakness in the US housing and labour markets, euro zone debt problems and a slowdown in growth of manufacturing activity in Asia have made investors speculate and the global economy will slow sharply for the rest of the year.