IMF Says Global Growth on Track, Downgrades UK, US Growth

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By Peter OBIORA InvestAdvocate

Click here to read full World Economic Outlook Update, July 2017

Lagos (INVESTADVOCATE)-The International Monetary Fund (IMF) on Monday said global growth projection remains on track with global output projected to grow by 3.5 percent in 2017 and 3.6 percent in 2018, according to its World Economic Outlook (WEO) update, July 2017.

The IMF cut its growth forecast for the United Kingdom (UK) and United States (US) economy this year by 1.7 percent and 2.1 percent respectively after a weak performance in the first three months of 2017.

While the growth projections for 2017 have been revised up for many euro area countries, including France, Germany, Italy, and Spain, where growth for the first quarter of 2017 was generally above expectations.

The IMF also said growth has been revised up for Japan  where private consumption, investment, and exports supported first-quarter growth. The growth forecast for 2017 was also revised up for Canada, where buoyant domestic demand boosted first-quarter growth to 3.7 percent and indicators suggest resilient second-quarter activity

The IMF WEO said the emerging and developing economies are projected to see a sustained pickup in activity, with growth rising from 4.3 percent in 2016 to 4.6 percent in 2017 and 4.8 percent in 2018.

According to the global financial institution, China’s growth projections have also been revised up, reflecting a strong first quarter of 2017 and expectations of continued fiscal support.

It said inflation in advanced economies remains subdued and generally below targets; it has also been declining in several emerging economies, such as Brazil, India, and Russia.

Click here to read full World Economic Outlook Update, July 2017