Finally some good news for the global markets! According to the latest statement from the International Monetary Fund on Tuesday, the global economy is expected to rebound from the last year’s major contraction and grow at a moderate pace of about four percent.

The 3.9 per cent growth rate quoted is better than the IMF’s previously quoted forecasts.

However, IMF did mention that the recovery from the worst slowdown since the World War II would be bit fragile. The estimated forecast for the year 2010 was 0.8 per cent higher than the 3.1 per cent estimated four months ago.

In an update of its October World Economic Outlook report, IMF mentioned, “The global recovery is off to a stronger start than anticipated earlier but is proceeding at different speeds in the various regions.”

Accounting for an increase of 1.2 per cent, the world’s largest economy US was expected to post the GDP growth of 2.7 per cent in 2010. China on the other hand is expected to report a growth of 1 per cent and Japan by 1.7 per cent. The 16-nation Euro zone’s GDP was set to expand 1.0 per cent.