Published: Wed, April 18, 2018
Economy | By

Canadian economy will still grow in 2018, just a little less

Canadian economy will still grow in 2018, just a little less

The World Economic Outlook report released on Tuesday, said that India's growth projections of 7.4 percent for this year and 7.8 percent for next year remained unchanged from the earlier estimates.

As reported, the World Bank remained unchanged its forecast for Ukraine's GDP growth in 2018 to 2019 at 3.5 percent and 4 percent respectively.

But risks to what would be the strongest growth in the global economy since 2010 include a sharp tightening of financial conditions, waning popular support for global economic integration, growing trade tensions and risks of a shift toward protectionist policies, and geopolitical strains.

The Trump administration has maintained that Republican tax cuts passed last year would allow the United States to maintain sustained gross domestic product growth above 3 percent for years and defy forecasts that USA budget deficits will balloon over the coming decade.

House describes 2017 a unique "breakout year", with growth boosted by the new federal child-care benefit and the oil rebound from sagging prices and the Fort McMurray fires. The choices governments, central banks, and regulators make now will determine how long this moment lasts.

Its goals are to ensure the stability of the worldwide monetary system (exchange rates and global payments), to secure financial stability, facilitate global trade, promote high employment and sustainable economic growth, and reduce poverty.

The IMF upgraded its forecast for the 19-country eurozone to 2.4 percent - which would be its best showing since 2007 - and up from the 2.2 percent it predicted three months ago.

Speaking at the World Bank and IMF Spring Meetings in Washington DC, Mr. Maurice Obstfeld, Economic Counselor and Director of the Research Department at the IMF, said the 44-country African Continental Free Trade Area promises to bolster African economies.

There are warnings about the risks ahead, lurking dangers that could lead to the global economy falling short of the IMF's forecasts, in addition to the concerns about trade.

"US tax reform will subtract momentum starting in 2020", the International Monetary Fund said.

The IMF economist said action to reduce imbalances between economies should be tackled in multilateral actions, adding that surplus and deficit countries should co-ordinate actions to bring their spending programmes more closely into line with their income levels.

House attributes the rosier USA outlook to federal tax cuts, a massive US$300-billion spending package and the possibility of an additional spending or infrastructure bill.

However, Obstfeld warned the stimulus was "largely temporary".

The IMF has also strongly criticised the approach of the Trump administration to trade deficits.

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