World growth to reach 3.5pc this year: IMF
International Monetary Fund managing director Christine Lagarde speaks at a past event. PHOTO|FILE
What you need to know:
- However, it warns that economic outcomes are extremely uncertain – mainly because of the uncertain outlook for US policy under the Trump administration.
- In its updated World Economic Outlook, the IMF says a pick-up in economic activity in the advanced economies started last summer, leading it to upgrade its forecasts for the rich countries.
Washington. The International Monetary Fund has slightly raised its economic forecasts for global growth this year, on the back of a stronger-than-expected performance by the United States, China, Europe, and Japan.
However, it warns that economic outcomes are extremely uncertain – mainly because of the uncertain outlook for US policy under the Trump administration.
In its updated World Economic Outlook, the IMF says a pick-up in economic activity in the advanced economies started last summer, leading it to upgrade its forecasts for the rich countries.
Growth in China was also stronger than first thought, supported by continued policy stimulus.
But weaker-than-forecast growth in some key emerging markets, notably Latin American states Brazil and Argentina, as well as post-coup attempt Turkey (which saw a big fall in tourist revenues), have led to the IMF to leave its overall global growth estimates broadly unchanged since October. A key driver in economic sentiment – increasing both upside and downside risk – has been the election of Donald Trump as US President, and the policy uncertainty that has brought.
The IMF says most analysts expect the Trump administration (backed by Republican control of Congress) to deliver a more expansionary fiscal policy, based on tax cuts and increased infrastructure and defence spending. (Agencies)
