International Monetary Fund improves economic growth forecast for CIS countries

That would be the fastest rate since 2011, when the world was bouncing back from the financial crisis. Consistent with these plans, the country s ongoing and necessary rebalancing process implies lower future growth, he said at a news conference in Davos.

The changes to the USA tax code are expected to be responsible for "about half" of the upward revision, the International Monetary Fund.

The International Monetary Fund (IMF) on Monday raised its global growth forecast for 2018 and 2019 by 0.2 percentage point to 3.9 percent, due to increased global growth momentum and the expected impact of the recently approved US tax policy changes. Projected U.S. growth was the highest among advanced economies. The IMF also predicted that the tax plan will reduce USA growth after 2022, offsetting earlier gains, as some of the individual cuts expire and the US tries to curb its budget deficit. "This short-term growth boost will have positive, albeit short-lived, output spillovers for US trade partners, but will also likely widen the USA current account deficit, strengthen the dollar, and affect worldwide investment flows".

China, which is 2017 growth champion with a growth rate of 6.8 per cent, is expected to slow down to 6.6 per cent in this year and 6.4 per cent next year.

US President Donald Trump will join the Davos meeting and is expected to talk about his "America First" trade agenda.

"However, there are still far too many people left out from the recovery".

"In the near term, the global economy is likely to maintain its momentum absent a correction in financial markets - which have seen a sustained run-up in asset prices and very low volatility, seemingly unperturbed by policy or political uncertainty in recent months", the report said.

An improving global growth outlook, weather events in the U.S., the extension of the Opec+ agreement to limit oil production, and geopolitical tensions in the Middle East have supported crude oil prices. "The mood is pretty good from a business point of view because of the synchronous growth".

This short-term growth boost will have positive, albeit short-lived, output spillovers for U.S. trade partners, but will also likely widen the USA current account deficit, strengthen the dollar, and affect global investment flows, the IMF official said. It also predicts 2.7 percent annual growth in the U.S.in 2018 (up from 2.3 percent).

But it forecasts growth in the United Kingdom at 1.5% in each of 2018 and 2019, lagging well behind the average pace of fellow advanced economies - having led the pack as recently as 2016.

In the year gone by, China (6.8%) was ahead of India (6.7%), giving China the tag of being the fastest growing emerging economies, as has been the case for major parts of the past several decades. The 2018 forecast was unchanged at 1.5 percent.

Mexico's economy is now expected to expand by 2.3 percent in 2018, 0.4 points better than the prior forecast, while 2019 got a stunning upward revision of 0.7 points to 3.0 percent, according to the WEO.

Policy makers should take steps to raise potential growth, such as with reforms that lift productivity, the International Monetary Fund said.

However, the fund warns that exuberant financial markets could be due for a reversal.


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