World economy to grow by 3.5% in 2017 : IMF

Posted by Daily Shipping Times on 25-07-2017        Tweet

KUALA LUMPUR: The International Monetary Fund kept its growth forecasts for the world economy unchanged for this year and next, although it slightly revised up growth expectations for the eurozone and China. In its updated World Economic Outlook, the IMF said Global Gross Domestic Product would be 3.5 percent in 2017 and 3.6 percent in 2018. Its last update was released in April.

The IMF in June shaved its forecasts for US growth to 2.1 percent for 2017 and 2018, slightly down from projections of 2.3 percent and 2.5 percent, respectively, just three months ago. The Fund reversed previous assumptions that the Trump administration's fiscal policy plans would boost US growth, largely because details of those plans have not materialized.

The Fund said growth in the euro area was now expected to be slightly stronger in 2018 and pointed to "solid momentum."

For China, the IMF said it now expected stronger growth of 6.7 percent in 2017, up 0.1 percentage point from the April forecast. China's growth will still moderate in 2018 to 6.4 percent.