Expected Positive Recovery on World Economy, says IMF

On Tuesday, the comprehensive global economic growth is expected to remain this year until 2018, according to the International Monetary Fund (IMF). While the gains of most countries around the globe were able to countervail weak data from India, United Kingdom, and the United States.

The IMF revised higher its predictions for the current economic upswing by 0.1 percentage points, showing 3.6 percent increase and 3.7 percent for next year. The upgraded forecast was steered by the increase in consumer confidence, investment, and trades.

Moreover, projections for China, Japan, and the euro area, including emerging markets, Europe and Russia, also skyrocketed.

The economic development in the United States remained unchanged at 2.2 percent in 2017 and 2.3 percent next year based on Fund’s July statistics. The tax reduction imposed by Trump administration is still not accomplished, as expected.

As indicated in the Fund’s report for April, the 2017 growth outlook for the United States was trimmed by 0.1 percentage points and 0.2 percentage points in 2018, and suddenly raise in July with the same points.

The Republican party had laid out three tax proposals seeing that Trump governs since January and the administration's most recent action is stuck in a political dispute in Congress.

The Fund affirmed that America’s economy would slow down due to changing demographics and weak productivity development in the longer term. It further mentioned that the potential growth of the state will only be at 1.8 percent, which is lower than the government’s target at 3.0 percent.

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Source: http://www.reuters.com/article/us-imf-g20-outlook/world-economic-growth-improving-even-as-u-s-uk-potential-slows-imf-idUSKBN1CF1OV?il=0