International Monetary Fund raises global growth outlook amid Trump tax cuts

IMF: Trump Tax Reform Will Accelerate Growth in US and Around the World

IMF predicts India will surpass China's growth rate in 2018

But it forecasts growth in the United Kingdom at 1.5% in each of 2018 and 2019, lagging well behind the average pace of fellow advanced economies - having led the pack as recently as 2016.

"The revision reflects increased global growth momentum and the expected impact of the recently approved US tax policy changes", the Fund states in its latest World Economic Outlook update, referencing the corporation tax cuts pushed through the US Congress late a year ago.

As a result, it revised up its global growth forecast for 2018 and 2019 by 0.2 per cent to 3.9 per cent, noting the revision reflected increased global growth momentum and the expected impact of the recently approved tax policy changes in the US.

And for 2019, the International Monetary Fund increased its USA growth forecast a whopping 0.6 points from October to 2.5 percent. The IMF said economic growth from 2022 onward will likely be weaker than previously estimated for the U.S.

But markets have rallied since Deputy President Cyril Ramaphosa's election as the ruling African National Congress (ANC) leader in December, as investors have warmed to his promises to root out corruption and kick-start economic growth.

Lady Overboard On Carnival Cruise
A search is now underway for a woman who went overboard the Carnival Triumph cruise ship which is based out of New Orleans . The Carnival Triumph travels between New Orleans and Mexico, and was expected to arrive in Cozumel on Monday.

The euro area also will see growth accelerating, improving in almost all member states, especially Germany, which saw its GDP forecasts upgraded by a half point this year and next to 2.3 percent and 2.0 percent, respectively. "But we should also use this time to find lasting solutions to the challenges facing the global economy in 2018".

Growth in the Middle East, North Africa, Afghanistan, and Pakistan region is also expected to pick up in 2018 and 2019, but remains subdued at around 3½ percent.

According to her " About one-fifth of developing and emerging economies saw their per capita income decline in 2017".

Lagarde urged countries to take advantage of healthy growth to enact reforms that will make their economies more efficient to spread prosperity to those who have been left behind.

The IMF said the short-term impact in the United States will mostly be driven by the investment response to the corporate income tax cuts.

Sisi sent strong messages to United States on Jerusalem: Parliament
Pence said the Trump administration would not reopen negotiations "on illegal immigration" until Congress reopens the government. These views were expressed by Jordan's King Abdullah while talking to US Vice President Mike Pence , in Amman on Sunday.

However, due to demonetisation in late 2016 and implementation of the Goods and Services Tax (GST), India's economy slowed down a little to 6.7 percent.

"On the upside, the cyclical rebound could prove stronger in the near term as the pickup in activity and easier financial conditions reinforce each other".

The International Monetary Fund also estimates that higher domestic demand will mute the response of inflation and, in turn, the Federal Reserve will have a faster pace of interest rate hikes.

The IMF said even though the economic "rebound could prove stronger in the near term", the risks to the global forecast remain tilted to the downside. In an environment of financial market optimism, ensuring financial resilience is imperative, the report said.

Current upswing in the global economy "furnishes an ideal moment to act on a range of multilateral challenges", Obstfeld said.

Gunman storms high school in Texas
ECSO posted to Facebook an update saying students, under police guard, were being moved as the investigation continues. The injured girl, whose name was not released, was taken to hospital in Dallas, about 70 km north of Italy town.

Latest News