Recovery 'to be slow and gradual'

WASHINGTON/L'AQUILA, Italy: The global economy is set to slowly pull out from its worst recession in six decades, the IMF said, and world leaders aim to help the recovery with a breakthrough in stalled trade talks.

The International Monetary Fund forecast a slightly steeper 1.4 percent global contraction in its latest outlook than in the previous April edition, but saw 2.5 percent growth next year, stronger than the 1.9 percent predicted earlier.

The fund warned, however, that the world economy and the banking sector at the heart of the financial crisis were not strong enough yet to do without heavy government spending and cheap central bank funds.