latest world business news

Britain's economy grew twice as fast as expected in the third quarter of this year, easing fears the recovery is tripping out and lowering the chance of more quantitative easing from the Bank of England. On the year, gross domestic product (GDP) grew by 2.8 percent, the fastest annual rate in three years and up from 1.7 percent in the previous quarter. British finance minister George Osborne said the figures gave him confidence that a steady recovery was underway, although economists maintained a sharp slowdown next year looked inevitable. The Office for National Statistics said the economy grew 0.8 percent between July and September, down from a nine-year high of 1.2 percent in the second quarter but at the very top end of economists' forecasts. Sterling jumped against the dollar and the euro and gilts hit a one-month low as investors reckoned BoE policymakers would struggle to make the case for more monetary stimulus next month, even if growth is expected to slow sharply

The world economy is recovering moderately but still faces challenges such as the need for medium-term fiscal consolidation, the IMF's First Managing Director, John Lipsky, said on Sunday. "They are mainly confident that there is a moderate recovery underway globally," he told reporters, referring to delegates at the G20 meeting of deputy finance and central bank chiefs in South Korea. "Obviously there are risks and challenges, but things seem to be moving more or less in line with our forecast," he said, listing well-designed exit strategies and medium-term fiscal consolidation as challenges. He said some good progress has been made in discussing changes to the IMFs executive board, but did not elaborate. G20 members have pledged to reach an agreement on the issue by the time leaders meet in Seoul in November. The United States, frustrated at Europe's refusal to share more IMF power with emerging economies, took unprecedented action last month to block