The International Monetary Fund (IMF) has raised its forecast for global growth this year, from 4.2% to 4.6%. It said the world economy grew strongly in the first part of this year, mainly thanks to robust growth in Asia. However, the UK was almost unique in having its 2010 growth forecast revised slightly down, while its 2011 forecast was cut by the IMF from 2.5% to 2.1%.

The IMF also warned risks had increased and there had been a setback in progress towards financial stability.

The IMF doesn’t spell out why it is now more gloomy about the UK, but I am assured that last month’s Budget is the reason Stephanie Flanders BBC economics editor Change and no change for UK recovery. Developed economies have maintained a modest, but steady recovery in the year to date, the supranational agency said.

Concerns over the sustainability of government finances in the developed world, especially Greece and others in Europe, were the major threat to global recovery the IMF argued. It said governments should focus on improving their finances, but warned them not to make cutbacks too rapidly.