IMF says global recovery on firmer footing
Washington, US – The global economic recovery is on firmer footing as improving growth in China, Europe and Japan offset downward revisions for the United States and Britain, the International Monetary Fund (IMF) said on Sunday.
However, wage growth remains sluggish which risks increasing tensions that have pushed some countries toward more anti-global policies, while efforts to erode financial regulations put in place since the 2008 crisis could erode stability, the IMF warned.
“The recovery in global growth that we projected in April is on a firmer footing; there is now no question mark over the world economy's gain in momentum,” IMF chief economist Maurice Obstfeld said.
Presenting the latest update of the World Economic Outlook (WEO), he said “Recent data point to the broadest synchronised upswing the world economy has experienced in the last decade.”
The fund still expects the global economy will grow by 3.5 per cent in 2017 and 3.6 per cent in 2018, the same as in the April WEO.
However, the unchanged forecast masks some significant revisions, including in the United States where the IMF downgraded its growth estimate last month after judging that spending plans promised by President Donald Trump that had been expected to provide a boost to the economy were stuck in limbo.
The US estimate was cut to 2.1 per cent for this year and next, down 0.2 points and 0.4 points, respectively, from the more optimistic forecast in the last report.
The outlook for the British economy also was revised down by 0.3 points to 1.7 per cent this year on weaker-than-expected activity in the first quarter, while the impact of Brexit ‘remains unclear’.