The IMF has predicted that the global economy would grow at 3.5% in 2017, up from 3.1 % last year, and 3.6% in 2018. This year’s projection of IMF is marginally higher than what was stated in their last update. The improvement in this year’s projection springs up from good economic news in Europe and Asia, notably from China and Japan. As per IMF, momentum in the global economy has been building up since the middle of the last year making it reaffirm its previous forecasts of higher growth for this year and next year.
However, it has warned that despite these signs of strength, many countries are likely to continue to struggle this year as well. IMF has warned that weather conditions and civil unrest would threaten the low-income countries with mass starvation. Particularly, in Sub-Saharan Africa, IMF expects the income levels to fall slightly. Further, commodity exporters in the Middle East, Africa, and Latin America are likely to struggle with low levels of commodity prices since early 2016.
IMF has suggested that policy interventions must address these disparities to ensure the stability of an open, collaborative trading system that benefits all countries. It has called for the need of credible strategies in many countries to place public debt on a sustainable path. It has asked the World to make a renewed multilateral effort to tackle common challenges in an integrated global economy.
IMF came into existence on December 27, 1945. The IMF works to improve the economies of its member countries. IMF was established to promote international economic cooperation, international trade, employment, and exchange rate stability. It also makes its resources available to member countries to meet the balance of payments needs. Its headquarters is in Washington, D.C.