International Monetary Fund revises up global growth forecast as Europe and Asia pick up

Posted January 23, 2018

The International Monetary Fund has downgraded its outlook for United Kingdom growth for 2019, the year of Brexit, while much of the rest of the G7 have been upgraded on the back of a strengthening global economy.

The World Economic Forum that is taking place in Davos, Switzerland will tackle the risks associated with the global economy, approaching subjects such as geopolitical tensions and extreme meteorological phenomena.

Releasing its 2018 World Economic Outlook, the International Monetary Fund said growth in 2017 was 3.7 percent - up 0.1 percent from what was forecast last fall and half a percentage point higher than 2016.

"The expected global macroeconomic effects account for around one-half of the cumulative upward revision to the global growth forecast for 2018 and 2019, with a range of uncertainty around this baseline projection". According to the IMF, Mexico's economy will experience an additional 0.4 percent growth this year and 0.7 percent growth next year, thanks to the changes in USA taxes. But the fact that forecast for China's 2018 and 2019 had been revised upward by 0.1 percentage point each from its earlier prediction did contribute to Asia's growth compared to previous estimates.

Twitter finds over 1000 new Russian-linked accounts
Petersburg-based Internet Research Agency (IRA) and shared information meant to meddle with the 2016 U.S. presidential election. The propaganda work was linked to an organization linked to the Russian government called "Internet Research Agency".

It had been, together with Germany, the fastest-growing of the G7 economies in 2016.

However, the Fund now expects UK GDP growth in 2017 to have come in at 1.7 per cent, slightly higher than the 1.6 per cent it pencilled in last month when it delivered its annual "Article IV" health check on the UK economy. Consistent with these plans, the country's ongoing and necessary rebalancing process implies lower future growth, Obstfeld said at a news conference in Davos.

The GDP may grow by 2.1 percent in the region in 2019, reads the report.

The most consequential part of the USA tax-code change will be the lowering of corporate-income tax rates, which should lead to an acceleration of business investment, the International Monetary Fund said.

Brooklyn pizzeria parodies laundry pod trend with new pizza
The Poison Control Center in Kansas City is seeing more calls about teenagers intentionally ingesting the harmful detergents. Now videos circulating on social media are showing kids biting into brightly coloured liquid laundry detergent packets.

"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".

On the downside, rich asset valuations and very compressed term premiums raise the possibility of a financial market correction, which could dampen growth and confidence. In an environment of financial market optimism, ensuring financial resilience is imperative, the report said.

She asserted said " Global growth has been accelerating since 2016, and all signs point to a continuing strengthening of this growth".This is why she has charged global political leaders to guard against the risk of complacency in the management of their economies.

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

Trump signs tax reform bill before jetting to Florida for Christmas
Trump is expected to remain at his tropical estate and private club through Christmas and return to Washington on New Year's Day. Republicans countered cost concerns by arguing that tax cuts would spur economic growth, bringing more money into the Treasury.