IMF foresees global economy accelerating to 3.5 pct. in '17

The IMF's forecast for 2017 was 6.6 per cent, compared to a 6.5 per cent estimate in January, and 6.2 per cent next year compared to 6.0 per cent.

"Everything seems to have been going in the right direction, so that is fuelling our confidence that this year and next year are going to be substantially better than last year was", he stated.

Meanwhile, the International Monetary Fund held its 2017 US growth forecast steady at 2.3 percent, which still represents a substantial jump from 1.6 percent growth in 2016, partly due to expectations that President Donald Trump will cut taxes and increase government spending. At the same time, adverse weather conditions and civil unrest threaten several low-income countries with starvation. Worldwide, there remained key risks to the outlook, which was more likely to fall short of than to surpass predictions.

Beijing should "focus on containing the problems at their source by accepting slower and more sustainable growth outcomes. and cutting off-budget public sector investment while increasing on-budget allocations for social assistance, health expenditure, unemployment benefits and restructuring funds", the IMF report said.

"A strengthening of the USA and global economy.allow us to make some positive assumptions about business conditions for the remainder of our fiscal year", said William Furman, chief executive officer of worldwide railroad giant, Greenbriers Company, based in Lake Oswego, Ore. He brought with him the prospect of tax cuts and increased government spending, bolstering the markets.

Meanwhile, a "broad-based recovery is expected to continue at a healthy pace" in Pakistan, the International Monetary Fund said, forecasting growth of five percent this year, and 5.2 percent in 2018, "supported by ramped-up infrastructure investment".

"I will meet the Emir and other Qatari government and business officials as we seek to strengthen our countries' business and trade relations", Museveni said before flying out on Tuesday.

But the IMF, Germany and other nations are anxious that overly-aggressive actions by the USA could spark a tit-for-tat trade war that stalls global growth. He described this as a "struggle of each against all, that will leave all economies worse off". Projected global growth is set to rise to 3.5% from 3.1%.

The IMF also said that if the Federal Reserve decides to raise rates at a faster pace, there will be a sharp dollar appreciation, which could hurt emerging economies.

The reference to the threats posed by protectionist choices in the U.S. is clear.

"While this is clearly a risk, the latest developments have been encouraging", she noted.

Among the factors that could harm economic growth: a protectionist trade agenda, a faster-than-expected rate hike in the US, and an aggressive rollback of financial regulations, according to the IMF's report.

  • Joey Payne