IMF Says Global Growth to Rise 3.6% in 2017, Marks up Emerging, Developing Economies by 0.1 Percentage Point

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October 10, 2017

By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Global financial institution, the International Monetary Fund (IMF) on Tuesday said global growth, which in 2016 was the weakest since the global financial crisis at 3.2 percent, is projected to rise to 3.6 percent in 2017 and to 3.7 percent in 2018, according to the latest World Economic Outlook (WEO) report October 2017.

IMF says the growth forecasts for both 2017 and 2018 are 0.1 percentage point stronger compared with the April 2017 WEO forecast.

The global lender said 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. But the recovery is not complete: while the baseline outlook is strengthening, growth remains weak in many countries, and inflation is below target in most advanced economies.

According to the Fund, growth is projected to rise over this year and next in emerging market and developing economies, supported by improved external factors—a benign global financial environment and a recovery in advanced economies. 

The IMF says growth prospects for emerging and developing economies are marked up by 0.1 percentage point for both 2017 and 2018 relative to April, primarily owing to a stronger growth projection for China.