The International Monetary Fund (IMF) revised its assessment for the global economy. According to the experts of the fund the economic recovery globally accelerates and the picture is much different than last year, when the world economy was limited. The accelerating growth is seen in Europe, China, Japan and the United States, as well as in parts of Asia, but the UK is an exception cited by the Fund.
The IMF forecast for Eurozone economy growth is 2.1% in 2017 and 1.9% in 2018. The engine of the economy is Germany with a projected growth of 2% this year, but a slight slowdown to 1.8% next year. At the same time, however, economic growth in France is expected to accelerate from 1.6% in 2017 to 1.8% in 2018.
The US economy forecast is for continuous growth in both 2017 and 2018 – 2.2% and 2.3%, respectively.
As for the UK, the forecast is for a slowing of growth in 2017 – by 0.1 percentage points to 1.7%. In 2018 the economy will advance even more slowly – 1.5%.
One of the positive expectations for Fund is related to Africa, where the incomes of the population have frozen over the last two years. In 2018, however, forecasts are for improvement of the situation.
The recovery is comprehensive, allowing ambitious policies to be implemented that will also contribute to economic growth and greater economic sustainability in the future. The experts’ recommendation is that politicians can take advantage of the moment because recovery is not yet complete in important sectors, and the “action window” that the current cyclical upswing offers will not be open forever.