The International Monetary Fund (IMF) raised its global growth forecast for 2017 and 2018 due to a broad-based recovery around the world. In its latest World Economic Outlook, the IMF adjusted their forecast up 0.1 percentage point to 3.6 percent in 2017 and 3.7 percent in 2018.
"The global recovery is continuing, and at a faster pace... we see an accelerating cyclical upswing boosting Europe, China, Japan, and the United States, as well as emerging Asia," said IMF chief economist Maurice Obstfeld.
Runnymede is most bullish on US and Chinese growth prospects. While Europe and Japan posted solid growth in 2017, they face serious demographic challenges which will limit growth for many years. We will discuss our outlook on growth on our quarterly webcast tomorrow at 2:30pm. If you are interested in attending, please email us at firstname.lastname@example.org.
The IMF expects the Chinese economy to grow 6.8 percent this year and 6.5 percent next year, both 0.1 percentage point higher than its previous forecast in July.
The fund also revised up its U.S. growth forecast to 2.2 percent in 2017 and 2.3 percent in 2018, 0.1 and 0.2 percentage point, respectively, higher than its projection in July.
Europe is less rosy with growth expected to slow to 1.9 percent in 2018 after a decent 2.1 percent growth in 2017. Japan is also expected to slow in 2018 to 0.7 percent but that is a bit higher than previous estimates.