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IMF Raises Growth Forecast for the Global Economy

24 April 2017

Global economic activity is picking up with a long-awaited cyclical recovery in investment, manufacturing, and trade, according to Chapter 1 of this World Economic Outlook.

GDP: Forecast raised to 6.6% vs 6.2% for 2017; 6.2% vs 6.0% for 2018.

Among G7 countries, the US has the highest projected growth, with increases of 2.3 per cent this year and 2.5 per cent in 2018, unchanged from the IMF's outlook in January.

The report urged USA policy makers to be "vigilant" about the increased leverage and declining credit quality in the corporate sector.

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The International Monetary Fund (IMF) improved its economic growth forecasts for 2017, from 3.8 percent to 4.2 percent, according to the latest World Economic Outlook report published Tuesday ahead of the spring reunion, business-review.eu informs.

Gains in infrastructure and trade support the IMF's prediction for greater global economic growth than previously expected. The inflation rate will accelerate to 3.1% next year.

The IMF raised its forecast for 2017 global economic growth marginally, to 3.5%, after 3.1% growth previous year.

The case against trade protectionism is expected to be a major theme of the semi-annual gathering of finance officials from the International Monetary Fund, the World Bank and the Group of 20 major economies later this week. IMF Managing Director Christine Lagarde warned last week that a "sword of protectionism" hung over a brightening global outlook.

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The average price of crude oil amounted to $42.84 per barrel in 2016, reported TASS the official Russian news agency, citing the document. "The world economy still faces headwinds". They also expect President Donald Trump to deliver tax cuts and infrastructure spending that could help boost USA economic growth. The euro zone will see 1.7 percent growth this year. It expects the local economy to grow in the next two years due to higher public spending and robust consumption.

The IMF warned too that emerging market and developing economies remained at risk from a more rapid rise in interest rates, a large appreciation in the USA dollar and lower commodity prices.

The IMF said China has made some progress in reducing its industrial production overcapacity, but noted that the economy continues to rely on government stimulus and rapid credit expansion to maintain growth.

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