April 19, 2017 – The International Monetary Fund published the 2017edition of the World Economic Outlook (WEO), which headlines with improved prospects for global economic activity resulting from an overdue “cyclical recovery in investment, manufacturing, and trade.” World growth is expected to increase from 3.1% in 2016 to 3.5% in 2017 and 3.6% in 2018, buoyed by expectations of more robust global demand, reduced deflationary pressures, and optimistic financial markets. Much of the renewed economic activity will likely be in emerging markets and developing economies, where the benefits from the partial recovery in commodity prices would be most marked. Projected growth for advanced economies have also been revised upward in the United States, reflecting assumed fiscal policy easing and increased confidence. Cyclical recovery in global manufacturing and trade should also benefit Europe and Japan. However, there are multiple risks to medium-term growth, particularly the possible faster-than-expected interest rate hikes in the US, which could trigger a tightening of global financial conditions and a sharp dollar appreciation, with adverse repercussions for vulnerable economies.
- The complete report is available from the IMF.