International Monetary Fund cuts South Africa's growth forecast for next two years

IMF: Trump Tax Reform Will Accelerate Growth in US and Around the World

IMF: Trump Tax Reform Will Accelerate Growth in US and Around the World

Global economies are recovering simultaneously and at a stronger pace, and will get at least a short-term boost from the United States tax cuts, the International Monetary Fund said Monday.

This announcement comes a day before Prime Minister Narendra Modi's address at the World Economic Forum (WEF) in Davos.

"Rich asset valuations and very compressed term premiums raise the possibility of a financial market correction, which could dampen growth and confidence." the International Monetary Fund said. According to the IMF, Mexico's economy will experience an additional 0.4 percent growth this year and 0.7 percent growth next year, thanks to the changes in US taxes.

It is true that impact of braking is controlled: it goes from 3.1% registered in 2017 to 2.4% this year, and for 2019 economy will grow slightly more than expected, up to 2.1%, one tenth above what was calculated in October, probably under premise that Incertidu Name policy will have remitted. Prominently for IMF Tax reform approved by administration of Donald Trump, which will make us grow 2.7% this year (compared to 2.3% forecast) and 2.5% in 2019, well above previous 1.9%. This growth is expected to continue into 2018 and 2019, as global growth is revised up to 3.9 percent for these two years.

India was the fastest growing country among emerging economies in 2016.

"We should certainly appreciate this season of broad-based growth momentum", she said.

Britain Will Have Its "Own Solution" To EU Links, France's Macron Says
The UK also announced an extra £44.5m to be spent on beefing up Channel border security. He said: "I am not the one to judge or comment on the decision of your people".

For next year and 2019, the Update revised global growth projections upward by 0.2 percent to 3.9 percent. "The effects of the package on output in the United States and its trading partners contribute about half of the cumulative revision to global growth over 2018-19". On the upside, the cyclical rebound could prove stronger in the near term as the pickup in activity and easier financial conditions reinforce each other, the report said. At a time of widespread economic euphoria, with upward revisions of prospects for world economy and Europe in particular, Spain is only developed economy that has reduced its growth prospects.

However, the rosier outlook came with a major caveat on financial markets, which the International Monetary Fund warned could be at the risk of a confidence-shaking correction.

Inward-looking policies, geopolitical tensions, and political uncertainty in some countries also pose downside risks, it said. "In an environment of financial market optimism, ensuring financial resilience is imperative".

But the changes could also widen the US trade deficit, strengthen the dollar and affect worldwide investment flows, the IMF said, warning that the benefits of the tax package will be short-lived and that growth in the world's largest economy will slow from 2022 onwards.

Current upswing in the global economy "furnishes an ideal moment to act on a range of multilateral challenges", Obstfeld said.

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