IMF foresees global economy accelerating to 3.5 pct. in '17

Paterniano Del Favero
Aprile 20, 2017

The IMF expected the advanced economies to grow by 2 percent this year, 0.1 percentage point higher than its forecast in January.

In an update to the World Economic Outlook report, the International Monetary Fund puts GDP in Australia at 3.1% for 2017, up from 2.5% in 2016, and at 3% for next year. Similar estimates were presented by the Commission in February 2017.

The IMF's estimate for worldwide economic growth is 3.5 per cent for this year and 3.6 per cent for 2018, up from 3.1 per cent last year.

Inflation in Kazakhstan is projected to reach 8 percent in 2017 and 7.2 percent in 2018 compared to 14.6 percent in 2016.

Beijing should "focus on containing the problems at their source by accepting slower and more sustainable growth outcomes. and cutting off-budget public sector investment while increasing on-budget allocations for social assistance, health expenditure, unemployment benefits and restructuring funds", the IMF report said.

The IMF said a resilient China, rising commodity prices and sturdy financial markets offered a sunnier outlook for the global economy which could dispel the gloom that had lingered since the Great Recession ended.

Overall, the IMF's forecast gave a solid picture of the global economy, which the body predicted to grow by 3.5 percent this year, up from 3.4 percent in the January forecast.

It was a rare upward revision to the growth forecast - the first in two years - which has been consistently disappointing. The outlook is a slight upgrade from the 3.4 percent global growth it had forecast in January.

The multilateral body raised the global growth forecast by 0.1 percentage point for 2017 at 3.8 per cent, but has retained the prediction for the United States at 2.3 per cent. United Kingdom growth, at 2%, is stronger than any of the major developed economies apart from the US.

"Growth picked up in the United States as firms grew more confident about future demand.Growth also remained solid in the United Kingdom, where spending proved resilient in the aftermath of the June 2016 referendum in favour of leaving the European Union (Brexit)", the International Monetary Fund said.

Even Brazil and Russian Federation, two countries that have suffered from the fallout of worldwide and domestic political difficulties, are forecast to see growth this year, although it's not particularly strong. The 19 countries in the eurozone - although overshadowed by Brexit and election uncertainties - are expected to achieve modest growth thanks to the weaker euro and accommodative fiscal policy such as low interest rates.

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