UPDATE 1-IMF chief sees faster global growth of 4.25 pct

*Less stimulus by emerging economies would offset inflows

*Faster growth seen despite European troubles

(Adds quotes)

LIMA, May 28 (BestGrowthStock) – The IMF sees global economic
growth of 4.25 percent this year and next, “faster than
previously expected,” the head of the multilateral lender said
on Friday.

At a meeting of officials from finance ministries in the
Americas, International Monetary Fund Managing Director
Dominique Strauss-Kahn said reducing fiscal vulnerabilities of
advanced economies was crucial.

“As recent events in Europe have reminded us, the dark
clouds have not yet passed,” he said, referring to fiscal woes
in Greece and Spain that have rattled financial markets.

In his prepared remarks, the IMF chief also encouraged
hard-charging emerging markets to begin withdrawing fiscal and
monetary stimulus they injected into their economies during the
height of the global crisis.

“In emerging markets, including in Latin America and the
Caribbean, the concerns are a bit different. With the recovery
more advanced, a natural starting point would be to remove
temporary fiscal stimulus,” he said. “Fiscal correction can
take some heat off monetary tightening, which in turn can
dampen excessive capital inflows.”

Stock Investing
(Reporting by Eduardo Garcia and Patricia Velez; Editing by
Kenneth Barry)

UPDATE 1-IMF chief sees faster global growth of 4.25 pct