IMF said Europe's growth will reach 2.4% this year then accelerates to 2.6% in 2012. Advanced Europe will have 1.7% growth in 2011 and 1.9% the year after, according to the fund.

European economies are on the right path towards recovery, yet they should stress on ameliorating the fiscal situation through reforms and firm policies.

With regard inflation, the IMF predicts that the rise in commodity prices will uplift inflation rate to 3.8% this year before it cools down to 3% in 2012, highlighting that the rise in prices is temporary while the main risk is stemming from high jobless rate and escalating wage inequality.