IMF Says Global Growth Gaining Momentum

20 April, 2017, 14:04 | Author: Leticia Walters
  • Reuters

Those projections are 0.8 and 0.2 percentage points higher respectively than in its January forecasts.

"Even so, the growth forecast embedded an environment of low investor and consumer confidence, and the risk premium on SA's foreign currency debt had already been on the high side for several months", said the International Monetary Fund, which, in other words, was fairly pessimistic even before SA's renewed efforts over the past three weeks to shoot itself in both feet, economically speaking.

Morocco's economic growth is forecast to jump from 1.5 per cent last year to 4.4 per cent this year, while Tunisia's economy is seen expanding by 2.5 per cent compared with just one per cent the year before.

Growth is also predicted to slow sharply in Iran, to 3.3 per cent in 2017, from 6.5 per cent previous year when the Islamic republic won a boost from the lifting of economic sanctions.

He said: "The fundamentals of our economy are strong and we continue to invest in the skills needed for a stronger and fairer Britain".

Socioeconomic Planning Secretary Ernesto M. Pernia sees growth starting this year on firm ground by 6.5-7% in the first quarter.

A resilient China, rising commodity prices and sturdy financial markets are offering a sunnier outlook for the global economy and helping dispel the gloom that has lingered since the Great Recession ended.

The IMF said a faster-than-expected pace of interest rate hikes in the U.S. could tighten financial conditions elsewhere, with potential further USA dollar appreciation straining emerging market economies with exchange rate pegs to the dollar or with material balance sheet mismatches.

Growth forecasts for 2017 and 2018 were revised upward for Russian Federation, where economic recovery is benefiting from higher oil prices, and China, reflecting stronger than anticipated policy support.

The overall figure for the region overshadows a faster pace in many of its oil-importing countries.

"In Washington this week I will be talking to our worldwide partners about how we can carry on increasing global economic growth, with Britain again playing an active and engaged role in the global economy".

The Fund also said China's strong growth was clouded in the medium term by "growing vulnerabilities" associated with its reliance on policy easing and credit-financed investment.

Wealthy economies also face deeper problems, in particular chronically weak growth in productivity - the output produced per hour of work - and aging workforces.

"Activity remained weak in fuel and non-fuel commodity exporters more generally, while geopolitical factors held back growth in parts of the Middle East and Turkey", the International Monetary Fund said.

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