IMF raises global growth forecast

Added On October 12, 2017

The International Monetary Fund has raised its global growth forecast for 2017 and 2018.
In its latest World Economic Outlook, the IMF pointed to positive signs coming from Europe, China, Japan and the United States.
On Tuesday, the IMF edged up its forecasts for the next two years. 
It now predicts the global economy will grow by 3.6 percent in 2017 and 3.7 percent in 2018. 
Both estimates are up 0.1 percentage points from its last forecast made in July.
Maurice Obstfeld,IMF chief economist believes that "we see an accelerating cyclical upswing boosting Europe, China, Japan, and the United States, as well as emerging Asia."
Many countries were revised up, most notably the world's two biggest economies.
The IMF now expects the Chinese economy to grow 6.8 percent this year and 6.5 percent next year, both 0.1 percentage points higher than its previous forecast in July.
While the IMF expects the U.S. to grow 2.2 percent in 2017 and 2.3 percent in 2018 - up 0.1 and 0.2 percentage points respectively.
The eurozone recovery is expected to gather strength this year, with growth projected to rise to 2.1 percent in 2017 before moderating to 1.9 percent in 2018.
Growth projection for Japan was revised to 1.5 percent in 2017 and 0.7 percent in 2018 - up 0.2 and 0.1 percentage point.
There were much larger revisions for some smaller countries. 
Cyprus saw its growth estimate revised up from 2.5 percent to 3.4 percent. On Friday the IMF said that the Cypriot economy had achieved an impressive turnaround since its banking crisis in 2013. 
However, despite the optimism, the IMF also warned of the possible risks to global economy in the medium term.
It cited persistently low inflation in advanced economies, financial stability risks in emerging markets, geopolitical tensions and protectionist pressures.
Maurice Obstfeld,IMF chief economist, says "numerous global problems require multilateral action. Priorities for mutually beneficial cooperation include strengthening the global trading system, further improving financial regulation, enhancing the global financial safety net, reducing international tax avoidance, and fighting famine and infectious diseases. Also crucially important are to mitigate greenhouse gas emissions before they do more irreversible damage, and to help poorer countries—which are not themselves substantial emitters—adapt to climate change."
The fund called on policymakers to seize the opportunity, push for critical reforms, and raise living standards.