The IMF is now saying world GDP growth was about 5 per cent in 2010, which is well above the 30-year average. For 2011 the IMF has lifted its forecast to 4.4 per cent, which is still noticeably above average. Global commodity prices have risen further in recent months. This has been quite widespread – from metals, to minerals, to energy and foodstuffs.
In a number of countries, measures of consumer price inflation have reflected this rise in commodity prices, particularly in the case of food. China, India, indeed most of Asia, and Latin America are all facing these issues. Managing these pressures is shaping up as one of the major international economic policy challenges of 2011.