Friday, 23 February, 2018

International Monetary Fund raises Portugal GDP growth projections to 1.7%

Nellie Chapman | 20 April, 2017, 07:24

The IMF also revised Britain's growth forecast to 2.0% for 2017, up a half percentage point from January.

The United States, South Korea's second-largest trade partner, will likely grow 2.3 percent in 2017 and 2.5 percent in 2018 led by a solid increase in private consumption and the expansionary fiscal policies of the Donald Trump administration, the International Monetary Fund said.

The sources welcomed the revision of the IMF's forecasts for the primary surpluses based on today's Fiscal Monitor report, noting that the Fund a year ago expected a primary surplus of 0.1 percent for 2016.

With the strong outlook for the Chinese economy, the global growth forecast for 2017 was also raised.

Maurice Obstfeld, IMF chief economist, who unveiled the fund's World Economic Outlook in Washington on Wednesday, said global growth will continue with the help of advanced economies and emerging, low income countries.

Meanwhile, the International Monetary Fund held its 2017 US growth forecast steady at 2.3%, which still represents a substantial jump from 1.6% growth in 2016, partly due to expectations that President Donald Trump will cut taxes and increase government spending.

"Global economic activity is picking up speed, but the potential for disappointments remains high, and momentum is unlikely to be sustained in the absence of efforts by policymakers to implement the right set of policies and avoid missteps", the report said.

The organisation attributes both this year's and 2018's marginal growth improvement to the rebound seen in commodity prices, the expansion of the country's electricity capacity as well as the effects of the drought dissipating.

The IMF said monetary policy has been supporting GDP growth and the implementation of the interest rate corridor in June a year ago has made the monetary transmission stronger.

According to Prime Minister Sorin Grindeanu, this year the Romanian economy will register a 5.2 percent growth.

Overall, Europe will record an economic growth of 2% whereas the Emerging Europe, a region that also includes Romania, will register a GDP advance of 3%.

By contrast, the Bank of Canada projects the economy will expand by 2.6 per cent this year, up from its previous estimate of 2.1 per cent growth. In addition to the oil output cuts due to the OPEC agreement, the low growth expected for 2017 comes from fiscal adjustment policies.