IMF says world economy is recovering

In a report released Wednesday, the International Monetary Fund forecast the global economic recovery has started. It also noted, however, that sustained improvement will require continued structural changes to correct global imbalances.

The IMF said that Asia must be re-oriented toward increased consumption, while the United States needs to move toward exports,. IMF Chief Economist Olivier Blanchard also cautioned that potential economic output may be lower than it was before the global financial crisis. "The turnaround will not be simple," Blanchard wrote in the report. "The crisis has left deep scars, which will affect both supply and demand for many years to come."