Europe debt crisis raises risks, IMF warns

The world economy is recovering faster than expected but Europe’s debt crisis has increased financial risks and governments urgently need to rebuild shaky public confidence, the International Monetary Fund said today.

The Washington-based IMF raised its 2010 world growth forecast to 4.5% from 4.1% in April. Its US growth forecast rose from 2.7% to 3.3%. The outlook for the European nations that use the euro common currency was unchanged at 1%.