International Monetary Fund raises China growth forecast to 6.6% this year, 6.2% in 2018

Mr Ross laid out America's stance very clearly and he's not impressed with Europe
GETTYMr Ross laid out America's stance very clearly and he's not impressed with Europe
Author

19 April, 2017

The International Monetary Fund (IMF) on Tuesday raised its forecast for global economic growth in 2017, saying buoyant financial markets and a long-awaited cyclical recovery in manufacturing and trade supported the improved outlook.

The world financial body in a release yesterday by its Economic Counsellor and Director of the Research Department, Maurice Obstfeld, said the momentum in the global economy has been building since the middle of last year, "allowing us to reaffirm our earlier forecasts of higher global growth this year and next". Growth will rebound to 4.5 percent in 2018, the report said - close to the government's target in its new budget. At the same time, adverse weather conditions and civil unrest threaten several low-income countries with starvation.

Beijing has said it wants to reorient the economy away from relying on exports and debt-fuelled investment towards a consumer-driven growth model, but the transition has proved challenging and led to slower expansion in recent years.

Nikita Shah, global economist at analyst firm Capital Economics, noted that despite the IMF's previous "optimistic bias", the firm believes its current forecasts for growth are "about right".

Inflation is expected to climb from the present uncomfortably low rate of 1.5 per cent to 2 per cent this year and 2.6 per cent in 2018.

That puts Britain among the fastest growing advanced economies this year, trailing closely behind the USA and Spain, which are expected to grow 2.3% and 2.6%, respectively.

More news: Palestinian prisoners just launched a mass hunger strike

"Global economic activity is picking up speed, but the potential for disappointments remains high, and momentum is unlikely to be sustained in the absence of efforts by policymakers to implement the right set of policies and avoid missteps", the International Monetary Fund said. It did not specifically mention the Trump administration's "America First" trade agenda aimed at reducing USA trade deficits and turning away more imports.

It said that growth is likely to dip in most Gulf Cooperation Council member states, which also include Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates. The WTO economist said he only sees an acceleration of trade to around 1.5 times the global growth rate.

"Protectionist policies in advanced economies would have an overall negative impact in Asia including the Philippines but the magnitude of impact and channels would depend on the specific policies that are still uncertain", he said. With persistent structural problems - such as low productivity growth and high income inequality - pressures for inward-looking policies are increasing in advanced economies. They also expect President Donald Trump to deliver tax cuts and infrastructure spending that could help boost US economic growth.

However, the foreword to its report contains a series of comments that appear aimed at Donald Trump's rhetoric of protecting American jobs.

The U.S. says its policies or threats don't amount to protectionism, but rather are an effort to rebalance distorted trade relationships.


More news


  • April the Giraffe FINALLY Gives Birth!!!

    April the Giraffe FINALLY Gives Birth!!!

    Following the announcement that the giraffe was finally giving birth, the YouTube live feed had nearly a million current viewers. The staff at the Animal Adventure Park are excited for the new addition to their zoo family.
    4 bodies in NY park are apparent homicide victims

    4 bodies in NY park are apparent homicide victims

    Police are not revealing when they believe the victims were killed, in an effort to "maintain the integrity of the investigation". Emergency vehicles are parked near the site where four bodies were discovered in Central Islip , N.Y., Thursday, April 13, 2017.
    West Virginia Governor Jim Justice pulls out cow dung during budget announcement

    West Virginia Governor Jim Justice pulls out cow dung during budget announcement

    The West Virginia Association of PAs says it would expand access to quality health care particularly in underserved areas. The Democratic governor of West Virginia brought a pile of bullsh*t to the state capitol in Charleston this week.
  • Daesh car-bomb attack kills 16 in W. Mosul: Iraqi army

    Nearly 330,000 people have fled Mosul since Iraq started an operation to expel Islamic State in October. Iraqi forces forced Islamic State out of the eastern side of the city in January.

    Workers relieve pressure on leaking Alaska oil well

    That's still down by nearly three-quarters from the peak of more than 2 million barrels in the late 1980s. The department has not yet been able to estimate how much crude has been released, it said.
    Indian high commissioner seeks copy of chargesheet, sentence against Kulbhushan Jadhav

    Indian high commissioner seeks copy of chargesheet, sentence against Kulbhushan Jadhav

    Jadhav can file mercy petition to the President of Pakistan within 90 days if the army chief rejects the appeal for clemency. The foreign affairs adviser said that Kulbhushan Jadav was tried under the law of the land in a fully transparent manner.
  • Japan PM: NKorea may be capable of sarin-loaded missiles

    According to South Korea's 2016 Defense White Paper, North Korea has been developing chemical weapons since 1980. South Korea has long said it believes the North can conduct its sixth nuclear test whenever it chooses.
    Toshiba denies report of suspension of chip unit sale process

    Toshiba denies report of suspension of chip unit sale process

    These concerns were raised in regard to Foxconn's participation in the auction, because of the company's links to China. The company also stated that it should be given exclusive negotiating rights, notes CNBC.

    U.S. drops 'mother of all bombs' on ISIS caves in Afghanistan

    Many say in fact the Afghan ISIS fighters came from Pakistan and adopted the group's branding in order to get financing. A US Army Special Forces soldier was killed fighting the terror group there Saturday.
  • Trump, Xi converge on currency, Syria as US-China ties warm

    The editorial noted Trump's recent decision to launch 59 Tomahawk missiles at a Syrian airfield in response to a deadly gas attack last week.

    Official Support for Windows Vista Ends April 11

    With official support for Windows Vista soon to end, we have chose to end our support of this now legacy operating system. The new operating system introduced the new Aero UI elements that acted as a ground in the development of Windows 7.
    Browns preseason schedule announced

    Browns preseason schedule announced

    The Browns will play the Bears in the preseason and regular season, both times in Chicago. The Browns and Buccaneers have battled in week three of the preseason since 2015.