IMF predicts Europe growth will lag U.S.

The International Monetary Fund (IMF) is predicting that growth in euro area would lag that of other developed economies reducing its growth forecasts in the region to 1.5% in 2011 from 1.6%. It revised up its prediction for U.S. growth next year from 2.4% to 2.6% with the U.K. being revised down from 2.5% from 2.7%.

The IMF forecasts world growth at 4.2%, up from 3.9%, with 2011 unchanged at 4.3% growth. This supports the view that investors should be focusing on companies with a global earnings profile, not those with a large percentage of its earnings in the euro zone or the U.K.