IMF raises expectations for economic growth

The International Monetary Fund is warning that its projections of stronger growth for the global economy could change if there are new terrorist attacks or a spike in oil prices.

Finance ministers and central bankers from around the world will meet this weekend in Washington, D.C., to discuss prospects for the global economy, outlined in the IMF’s latest World Economic Outlook, and whether more must be done to help the poorest nations.

The IMF raised its forecast for world economic growth to 4.6 percent in 2004 and 4.4 percent in 2005, or 0.6 percent higher than its last forecast in September.

The improvement reflects stronger-than-expected performances by the United States, Japan, Britain, Russia and developing countries in Asia.

Above, World Bank President James Wolfensohn discusses the world economic outlook at an IMF event on Thursday.

Aviation

Boeing expects to beat first-quarter estimates

Citing good performance across its core businesses, Boeing Co. said Thursday it expected to “significantly” exceed analysts’ estimates when it reports first-quarter earnings next week.

The airplane maker and defense contractor did not provide further details in its brief statement.

The consensus estimate of analysts surveyed by Thomson First Call is for earnings of 44 cents a share and revenues of $12.46 billion, up slightly over the first quarter of 2003.

Real Estate

Mortgage rates climb

Rates on benchmark 30-year mortgages rose for the fifth week in a row, climbing to their highest level of the year.

The average rate on a 30-year, fixed rate mortgage increased to 5.94 percent this week, up from 5.89 percent last week, mortgage giant Freddie Mac reported Thursday in its weekly nationwide survey of rates.

Rates for 15-year, fixed-rate mortgages, a popular option for refinancing, rose this week to 5.25 percent, up from 5.23 percent last week.

Transportation

Yellow profits rise

Overland Park-based trucking giant Yellow Roadway Corp. reported earnings Thursday of $18.16 million during the first quarter, more than three times what Yellow made in the same period last year, before its merger with Roadway.

The profit, which amounted to 38 cents a share, compared with earnings of $5.63 million, or 19 cents a share, last year. Analysts surveyed by Thomson First Call had predicted earnings of 33 cents a share.

Yellow acquired Akron, Ohio-based Roadway in December in a cash-and-stock deal valued at $1.05 billion.