IMF raises its outlook for global growth

Views Date 19/04/2017 - 19:11

Economy News _ Baghdad:

The International Monetary Fund (IMF) raised its global growth forecast in 2017 thanks to manufacturing gains and trade in Europe, Japan and China, but warned against trade protection policies that signaled a halt to widespread recovery.

The IMF, which starts spring meetings with the World Bank in Washington this week, expects the world economy to grow 3.5 percent in 2017, up from 3.4 percent in its previous forecast in January.

In the latest World Economic Outlook, the IMF said the developed economies, which are chronically weak, are expected to benefit from a recovery in manufacturing and world trade that started to gain momentum last summer.

"It seems that the economic improvement we have been expecting for some time is beginning to materialize," IMF chief economist Maurice Obstfeld said in the report.

The IMF raised its growth forecast for Japan in 2017 by 0.4 percentage points from January's estimates to 1.2 percent and raised its growth forecast for the eurozone and China by 0.1 percentage points to 1.7 percent and 6.6 percent respectively.

At the same time, the IMF kept its growth forecast for the US this year unchanged at 2.3 percent, a big jump from a 1.6 percent growth in 2016, partly because of expectations that US President Donald Trump would cut taxes Increasing government spending. He also revised his growth forecast for Britain this year to 2 percent, half a percentage point higher than his January forecast, and said the negative impact of the vote on exit from the EU would take longer.

Although growth appears to be generally improving between developed and emerging economies as well as oil and commodity exporters benefiting from price recovery, including Russia, IFAD said recovery is still fragile and prospects are facing unfavorable factors including chronic vulnerability to productivity growth and policies that may Trade is restricted. The IMF did not specifically mention Trump's trade policies, which bear the slogan "America First" and aim to reduce the US trade deficit.


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