UPDATE 3-Europe taking good steps – IMF chief

* IMF sees U.S. economy growing 3 pct, Europe 1-1.5 pct

* Says emerging countries face risks from big inflows

* World Bank raises Latam growth view
(Adds World Bank forecasts)

By Patricia Velez

LIMA, May 27 (BestGrowthStock) – Measures announced by European
countries to tackle their fiscal woes are helpful steps, IMF
chief Dominique Strauss-Kahn said on Thursday, adding that
Europe’s economy will be back on track soon.

Strauss-Kahn, who spoke after meeting with Peruvian
President Alan Garcia, said the International Monetary Fund
believes that Greece and Spain are making the right moves to
tackle their economic problems, which have rattled global
financial markets for weeks.

“Those countries in Europe having a fiscal problem are
addressing this problem these days, along the measures that
have been announced, and I do believe that they are going in
the right direction,” the IMF’s managing director told a media
conference in Lima.

“I think that we’ve got good reason to believe that
everything will come back on track rather rapidly,” he added.

Strauss-Kahn also said the U.S. economy should grow about 3
percent this year. Europe may post growth of between 1
percent and 1.5 percent, he said.

He told students at a Peruvian university that Europe faces
problems of high debt loads and slow economic growth and
mending the global economy depends on continued policy
coordination by governments.

He said much of Asia and Latin America were growing well
and had largely moved past the crisis, but advanced economies
were still lagging a bit.

The French economist also said Peru’s economy should
expand between 5 and 7 percent this year, a forecast that could
make it the fastest growing in Latin America.

But he said hard-charging Latin American economies like
those of Peru and Brazil face risks from enormous capital
inflows that could cause asset bubbles or overheating.

Doubts remain about a fragile global economic recovery and
investors are pouring money into emerging economies as they
look for yield outside of traditional markets, he said.

WORLD BANK SEES FASTER LATAM GROWTH

Latin America will post economic growth this year of 4.5
percent, up from an earlier view of 4 percent, the World Bank’s
economist for the region said.

Augusto de la Torre told Reuters Brazil and Peru will grow
the most, while Mexico, which suffered a steep drop last year,
will see its economy expand more than 4.5 percent.

Strauss-Kahn said this week he expects Peru and Brazil to
grow up to 7 percent, though de la Torre’s forecasts were not
quite as optimistic.

Stock Investing
(Reporting by Terry Wade; Writing by Eduardo Garcia; Editing
by Andrew Hay; editing by Carol Bishopric)

UPDATE 3-Europe taking good steps – IMF chief