Thursday, October 12, 2017

Global economic recovery may not last, warns IMF

Fund cuts UK and US growth forecasts, and also tells governments not to get complacent in its latest World Economic Outlook

The International Monetary Fund has said the global economy’s recent recovery may not last, despite a pickup in activity in all western countries except the UK.

Marking the 10th anniversary of the onset of the financial crisis, the IMF said in its World Economic Outlook (WEO) there was a risk that governments could be lulled into a false sense of security by booming markets and policymakers needed to guard against complacency.

Maurice Obstfeld, the IMF’s economic counsellor, cited high asset prices, rapid credit growth in China, political turmoil in Catalonia and a cliff-edge Brexit as risks to an improving global outlook.

Overall, the IMF said global output growth would increase from 3.2% in 2016 to 3.6% this year and 3.7% in 2018. It upgraded its growth forecast by 0.1 percentage points for this year and next from the last full WEO in April and the update to its forecasts in July. - Read More


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