The world economy will grow in 2018 at a faster pace than anticipated, mainly due to the reduction of taxes in the United States, but commercial tensions threaten to hurt months of synchronized global expansion, the Institute of International Finance announced.
The IIF, by its abbreviations in English, a global association that groups to companies of the financial sector, elevated its forecast of global growth for this year in 2 tenths to 3 and a half percent, after raising its projection of the economic expansion of States United in 2018 at 2.9 percent.
The US economy grew 2.3 percent last year, according to the IIF, which had expected a 2.4 percent expansion for the United States in 2018 before a tax cut approved at the end of last year came into effect.
The Institute of International Finance considers the jump in inflation, especially in the United States, which is very much guided by the price of crude, as a risk to global growth.
Among the main emerging economies, the report highlights Brazil’s continued growth after a deep recession in 2015-2016, with a large fiscal deficit as the main risk for its growth forecast of 2.7 percent for this year.
China would grow at a slightly lower rate to 6.7 percent, compared to 6.9 percent in 2017, while India will probably accelerate its expansion to 7.9 percent, having registered 6.4 percent last year.
Listen to this report here: