International Monetary Fund revises up global growth forecast as Europe and Asia pick up

TOPSHOT-US-POLITIC-TRUMP

But it forecasts growth in the United Kingdom at 1.5% in each of 2018 and 2019, lagging well behind the average pace of fellow advanced economies - having led the pack as recently as 2016. It estimates that growth will be at 2.7 percent in 2018, up 0.4 percentage points from its previous estimate, and forecasts growth of 2.5 percent in 2019, 0.6 percentage points higher than the October forecast.

Emerging and developing Asia will grow at around 6.5 percent over 2018-19, broadly the same pace as in 2017, International Monetary Fund said, adding that the region continues to account for over half of the growth in the world. Growth in 2017 is forecast to have reached 3.7 per cent, up 0.1 per cent from October's estimates and half a percentage point higher than 2016. At a time of widespread economic euphoria, with upward revisions of prospects for world economy and Europe in particular, Spain is only developed economy that has reduced its growth prospects.

But markets have rallied since Deputy President Cyril Ramaphosa's election as the ruling African National Congress (ANC) leader in December, as investors have warmed to his promises to root out corruption and kick-start economic growth.

The Update estimated USA growth at 2.3 percent for last year and forecast a growth rate of 2.7 percent this year and 2.5 percent next year. The revision reflects increased global growth momentum and the expected impact of the recently approved US tax policy changes.

It has told policymakers that the current cyclical upswing provides an "ideal opportunity" for reforms.

The Chinese economy, the world's second-biggest, is believed to have grown 6.8 percent in 2017. "A possible trigger is a faster-than-expected increase in advanced economy core inflation and interest rates as demand accelerates", it stated.




In 2017, China's GDP growth rate of 6.8% was ahead of India's at 6.7%, giving the former the tag of being the fastest growing emerging economy.

The revision reflects stronger than expected activity a year ago, higher projected external demand, and the expected macroeconomic impact of the tax reform, in particular the reduction in corporate tax rates and the temporary allowance for full expensing of investment, it said.

On the downside, rich asset valuations and very compressed term premiums raise the possibility of a financial market correction, which could dampen growth and confidence.

"Multilateral cooperation remains vital for securing the global recovery".

At that time the IMF's director general said that the UK's economic performance since the Brexit vote in June 2016 had vindicated the Fund's pre-referendum warnings.

"Shared priorities across all economies include implementing structural reforms to boost potential output and making growth more inclusive".

Related news:

Hot News

isis-killer-beheading-video-story-top SBIRS GEO-4 to establish baseline space-based missile-warning capability
Jan 22, 2018 - 02:22
This mission comes at a tense time between the U.S. and North Korea, and it is satellites like this one that will alert the U.S. Thursday's launch was delayed "due to a ground issue associated with the booster liquid oxygen system", ULA wrote on Twitter .

isis-killer-beheading-video-story-top DUP lawmaker slams 'nutcase' Irish prime minister
Jan 22, 2018 - 02:21
She replied: "If a vote was to come up I would do what I did last time round, which was sit down and look carefully at the issues. Juncker's comments come just a day after European Council president Donald Tusk told Britain :'Our hearts are still open to you'.

isis-killer-beheading-video-story-top Women storm U.S. streets in protest against Trump's policies
Jan 22, 2018 - 02:18
Organizers want to register 1 million new voters and get more strong advocates for women's rights into office. She said if women and others don't take action such as voting and getting involved nothing will change.

isis-killer-beheading-video-story-top Battlefield 1: Apocalypse DLC Adding New 'Air Assault' Mode in February
Jan 21, 2018 - 01:40
On the Caporetto map, you'll also have access to two new bombers - the Hansa Brandenburg GI and the Airco DH10. Here, players will battle across a devastated landscape and search for cover in dugouts and ruined buildings.

isis-killer-beheading-video-story-top Sainz plays it safe as weather wipes out Dakar bike, quad stages
Jan 21, 2018 - 01:37
They will cover a distance of 166km of liaison and 120km of special stage before they get to the finish line at the 2018 Dakar. Commenting on his strong performance, Juan Pedrero said, "I enjoyed the first part of the stage in the sand".

isis-killer-beheading-video-story-top Svitolina ends Kostyuk's campaign at Australian Open
Jan 21, 2018 - 01:36
One of five players who have a chance to finish the Australian Open as world number, she is now the only seed left in her section of the draw.

isis-killer-beheading-video-story-top Four more dead as Pak shelling continues
Jan 21, 2018 - 01:36
Manhas said the lodgement centres have been activated and people migrating from border areas are putting up at these centres. People from the affected areas got threatened from the heavy ceasefire by Pakistan and not coming out of their house.

isis-killer-beheading-video-story-top Gunmen Attack Luxury Hotel in Kabul: 'They Are Shooting at Guests'
Jan 21, 2018 - 01:32
One was and killed by security forces and three others were still battling the forces from inside the hotel, he added. The state-owned hotel was the target of a Taliban attack in 2011 that left 21 people dead, including nine attackers.

isis-killer-beheading-video-story-top Kim Kardashian, Kanye West Name Their Baby Chicago West: Best Fan Reactions!
Jan 21, 2018 - 01:29
It will probably be a while until Kim and Kanye release photos of Chicago - and they certainly won't be selling it to the press. Kardashian West also revealed that the baby weighed 7lbs 6oz.

isis-killer-beheading-video-story-top Kim Kardashian Reveals The Name Of Her Third Baby: Welcome, Chicago West!
Jan 21, 2018 - 01:28
Celebrity couple Kim Kardashian and her husband Kanye Wes with their daughter North (standing) and son Saint . Kim Kardashian West, left, and Kanye West arrive at the MTV Video Music Awards in New York, Aug. 28, 2016.

isis-killer-beheading-video-story-top Australian Open: Halep nearly 'dies' getting over Davis hurdle
Jan 21, 2018 - 01:26
But it held up for three hours and 45 minutes and 48 games - the most games ever in a women's match at the Australian Open. She continued: "That third set was nothing really like I had ever played before, such an wonderful atmosphere".

isis-killer-beheading-video-story-top Halladay Had Drugs In System
Jan 21, 2018 - 01:22
The plane was equipped with a parachute but it wasn't deployed, and Halladay's body was found with the plane. He pitched in the major leagues for 16 years, and retired following the 2013 season.

isis-killer-beheading-video-story-top Stephen Curry wants Kevin Durant, Greek Freak on his All-Star squad
Jan 20, 2018 - 04:16
Each player's score was calculated by averaging his weighted rank from the fan votes, the player votes and the media votes. Charles Barkley , Shaq, and Kenny Smith also stated they felt LeBron as Captain should pick Durant as his first pick.

isis-killer-beheading-video-story-top Some Amazon Prime Memberships Are Increasing by almost 20%
Jan 20, 2018 - 04:15
But users who choose to pay up-front annual fees for the service will still pay $99 for standard membership and $49 for students. Amazon raising the price of the monthly membership is a clear indication that the company wants to get a yearly commitment.

isis-killer-beheading-video-story-top Kyrgios Edges Tsonga In Melbourne Thriller
Jan 20, 2018 - 04:14
He looks rattled at the moment, netting a backhand slice to make it 0-30, and at 15-30 Kyrgios earns two break points with a deft volley.