Published: Wed, April 19, 2017
Sci-tech | By Jackie Newman

IMF Organisation warns of growing risks to improving global recovery

IMF Organisation warns of growing risks to improving global recovery

Ahead of a meeting of world finance chiefs in Washington this week, the International Monetary Fund released on Tuesday its flagship report on the world economy, forecasting the USA economy would grow at 2.3% this year and 2.5% in 2018 - a faster pace than last year's 1.6%.

The IMF said that it expects real GDP growth for the seven oil-exporting countries in the Middle East of 1.9 per cent this year, which is a full percentage point lower than the 2.9 per cent growth it forecast for the group last October.

The fund left its growth forecasts for 2018 unchanged at 3.6%, and said the acceleration would be felt across all types of economy.

"At the same time, a combination of adverse weather conditions and civil unrest threaten several low-income countries with mass starvation".

"The world economy may be gaining momentum, but we can not be sure that we are out of the woods", said Mr. Obstfeld.

Arriving on the same day British Prime Minister Theresa May announced a snap general election, the report states that Britain's economy is expected to grow by 2% this year, up from its 1.5% estimate in January.

The IMF resident representative also said higher commodity prices will push up inflation to 3.6 percent in 2017, then slightly decelerate to 3.3 percent in 2018. It retained the 3.6-percent growth projection for 2018.

In China, while growth has come in above expectations despite efforts to remodel the economy around greater sustainability, Obstfeld said this relied on increases in lending "so rapid it may cause financial stability problems down the road".

The touch sensitive HTC U leaked: looks like the HTC U Ultra
HTC U will be the third phone in its U series, following the HTC U Play and HTC U Ultra, which launched in January. The phone features a home button in the front, which is expected to double up as fingerprint scanner.

In the run-up to last June's European Union referendum, the IMF's French director Christine Lagarde warned that the consequences of a Leave vote ranged from "bad to very bad" and could wipe out almost 10 per cent off our economy. "But even as things look up, the post-World War II system of global economic relations is under severe strain", IMF chief economist Maurice Obstfeld said.

"Whether the current momentum will be sustained remains a question mark".

The IMF cautioned that its forecasts are "particularly uncertain" because of potential policy changes by the new US administration.

However, the foreword to its report contains a series of comments that appear aimed at Donald Trump's rhetoric of protecting American jobs.

"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.

And French auto parts maker Faurecia SA said first-quarter sales rose 9.8% on strong growth in the US and China.

On the threat of protectionism, however, which the International Monetary Fund has launched a campaign against in the past week, Shah was less concerned.

Protection threats to growth in Europe were also highlighted by International Monetary Fund economists, just days ahead of the first round of the French presidential election.

Like this: