Washington – The International Monetary Fund on Tuesday bumped up its global growth forecasts, saying an upswing in the world economy would likely gather pace into next year.
But the global crisis lender called on governments to strike while the iron was hot, saying dangers for the current recovery lurked on the horizon and ambitious reforms were necessary for continued poverty reduction.
Global economic output should increase by 3.6 percent this year and by 3.7 percent in 2018, up marginally from forecasts published three months ago but well above growth seen in 2016, the IMF said in the latest update to a semiannual report on the world economy.
In the latest version of its World Economic Outlook, the IMF now predicts advanced economies will grow by 2.2 percent this year — 0.2 percentage points faster than a July estimate — before slowing to two percent growth next year.
In Britain, however, the weakening pound has shrunk household incomes and future relations with Europe remain in considerable doubt following voters’ decision last year to exit the European Union.The IMF now believes GDP growth will slow this year and next, sliding three tenths to 1.5 percent by 2018.
To meet their stated goal of doubling real GDP growth between 2010 and 2020, Chinese officials are expected to maintain high levels of public investment and pro-growth policies, with growth due to rise by 6.8 percent this year and 6.5 percent the next.