IMF raises forecast for global growth

IMF raises forecast for global growth
The International Monetary Fund has upped its forecast for global growth to 3.6 per cent in 2017 and 3.7 per cent in 2018.

Both are 0.1 per cent higher than projections in July and well above the global growth figure in 2016 was 3.2 per cent.

According to the IMF, the fastest and most widespread growth spurt since the global recession in 2010 is on the back of stronger expansion in the first half of the year in the Eurozone, Japan and some emerging markets.

That offset its lower forecast for US growth to 2.1 per cent for 2017 and 2018 from earlier projections of 2.3 per cent and 2.5 per cent.

The IMF also sharply reduced its forecast for the British economy to 1.7 per cent, down from 1.9 per cent.

Australia’s gross domestic product has been forecast to grow at 2.2 per cent, a sharp reduction from its projection just six months ago of 3 per cent and attributed to bad weather at the start of the year.

Slower growth in Australia, the US and UK was more than compensated by growth from China, which is performing better than expected with easy credit and massive investment, Japan and the Eurozone.

“The global upswing in economic activity is strengthening,” the IMF said in its executive summary.

“Broad-based upward revisions in the euro area, Japan, emerging Asia, emerging Europe, and Russia — where growth outcomes in the first half of 2017 were better than expected — more than offset downward revisions for the United States and the United Kingdom.”

 



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