Published: Wed, April 19, 2017
Money | By Oscar Reynolds

International Monetary Fund raises growth predictions, frets about protectionism

International Monetary Fund raises growth predictions, frets about protectionism

Also in attendance, would be top officials of the World Bank and the International Monetary Fund, Civil Society Groups, as well as participants from the academia and private sectors, for the 2017 annual meetings of the IMF and World Bank.

In contrast, second-ranked France, which has struggled to get its economy going, will rise to 1.4 percent this year - also up 0.1 of a point compared with January - from 1.2 percent in 2016.

Meanwhile, the International Monetary Fund held its 2017 US growth forecast steady at 2.3 percent, which still represents a substantial jump from 1.6 percent growth in 2016, partly due to expectations that President Donald Trump will cut taxes and increase government spending.

Britain's economy, however, is likely to expand 2.0 percent in 2017, up 0.5 point, and 1.5 percent in 2018, up 0.1 point, against an estimated 1.8 percent in 2016.

China's economy grew by a faster-than-expected 6.9 percent in the first quarter of this year, fueled by robust bank lending, higher government infrastructure spending and a housing market that is showing signs of overheating.

The IMF said monetary policy has been supporting GDP growth and the implementation of the interest rate corridor in June previous year has made the monetary transmission stronger.

With the United States economic recovery ahead of those in Japan and Europe, the Federal Reserve is expected to raise its benchmark interest rate a total of three times in 2017. Its forecast for the global economy in 2018 remains unchanged at 3.6 percent.

Its US growth forecasts for 2017 - of 2.3 percent and 2.5 percent in 2018 - are unchanged and partly due to expectations President Trump will cut taxes and increase government spending.

The demonetisation initiative in India had caused economic distortions that hindered the country's growth potential but the economy still grew admirably.

The IMF forecast that the global economy would grow by 3.5% in 2017, higher than its January forecast of 3.4%.

It said higher commodity prices would result in faster inflation at 3.6 percent in 2017 and 3.3 percent in 2018, although still within Bangko Sentral ng Pilipinas' target range of 2 percent to 4 percent.

Recent fiscal policy reforms improve Sri Lanka's economic outlook - World Bank Mon, Apr 17, 2017, 11:38 pm SL Time, ColomboPage News Desk, Sri Lanka.

The May budget is set to forecast a surge in economic growth, much lower unemployment and a rebound in inflation, according to a "sneak preview" released by the International Monetary Fund Wednesday morning in Washington. The Fund said negative effects from the United Kingdom vote to leave the European Union are taking longer to materialize.

Besides China's continued strength, growth is expected to pick up in a number of advanced economies and emerging markets, including the United States, Japan, Europe and Russian Federation.

However, the foreword to its report contains a series of comments that appear aimed at Donald Trump's rhetoric of protecting American jobs.

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