But in its latest world Economic outlook, the IMF said the â€œpace of recovery is expected to be slowâ€. It added that the recovery is likely to be â€œinsufficient to decrease unemployment for quite sometimeâ€.
On Wednesday, the IMF cut its forecast for the amount that banks are likely to lose in bad loans and investments.
The total it expects banks to lose between 2007 and 2010 is now $3.4tn (Â£2.1tn), down from its previous estimate of $4tn.
This reduction is a direct result of the improved outlook for the global economy.
Separately, the head of the European Central Bank (ECB) said that the 16 countries in the eurozone should withdraw stimulus packages in the next two years.
â€œFrom an ECB point of view, it is important to do what is necessary to exit as soon as possible,â€ Jean-Claude Trichet said at a meeting of EU finance ministers and central bank governors in Gothenburg.
â€œIt is important in our view that it starts as soon as the recovery starts. It is something which is essential for the recovery itself.
â€œI would say, in our own view, at the latest in 2011, the global recovery is being led by Asia, where economies have â€œwithstood the financial turmoil much better than expected,â€ the IMF said.