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

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

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

The International Monetary Fund lowered its 2017 growth forecast for Egypt, reflecting the economic toll from the government's decision past year to float the pound and introduce a reform program.

The IMF in its latest World Economic Outlook report stated "Output in Nigeria is projected to grow by 0.8 percent in 2017 as a result of a recovery in oil production", said the report, also citing sustained growth in the agricultural sector. "Growth is projected to rise to 2.6 percent in 2017 and 3.5 percent in 2018, largely driven by specific factors in the largest economies, which faced challenging macroeconomic conditions in 2016", the outlook read. The UAE's forecast is cut to 1.5 per cent from 2.5 per cent past year.

He pointed out that despite these signs of strength, many other countries will continue to struggle this year with growth rates significantly below past forecasts.

Banking giant Standard Chartered Bank revised upward its GDP growth forecast for the Philippines to 6.8 percent from 6.7 percent, expecting still strong household spending and infrastructure investment to provide strong support for growth this year, similar to 2016. But it said that "inward-looking policies" could derail economic improvements.

That puts Britain among the fastest growing advanced economies this year, trailing closely behind the United States and Spain, which are expected to grow 2.3% and 2.6%, respectively.

The IMF cautioned that its forecasts are "particularly uncertain" because of potential policy changes by the new USA administration.

"Global economic activity is picking up speed, but the potential for disappointments remains high, and momentum is unlikely to be sustained in the absence of efforts by policymakers to implement the right set of policies and avoid missteps", the International Monetary Fund said. U.S. President Donald Trump has plans to soften rules for banks as he believes that the current regulation hinders lending to the real economy.

"I will meet the Emir and other Qatari government and business officials as we seek to strengthen our countries' business and trade relations", Museveni said before flying out on Tuesday.

"Acceleration will be broad-based across advanced, emerging, and low income economies, building on gains we have seen in both manufacturing and trade", he said.

Global trade has fostered "economic miracles" around the world, driving growth and lifting millions out of poverty, he stressed.

Economic growth in China, the world's second largest economy, has also come at a cost of an unprecedented credit buildup that many economists warn could mean much weaker growth ahead and even financial turmoil.

Threats to global trade and integration, however, were given the most emphasis by Obstfeld.

On the threat of protectionism, however, which the International Monetary Fund has launched a campaign against in the past week, Shah was less concerned.