IMF: World growth continues to strengthen

IMF: World growth continues to strengthen

WASHINGTON –
The global economy is expected to grow at a solid pace in 2019, driven by faster expansion in the United States and Europe, but after that the risks will increase, the company said on Tuesday. International Monetary Fund.
In the latest update of its World Economic Outlook, the IMF still forecasts world growth of 3.9 percent in 2018 and 2019, unchanged from January, despite high estimates for growth in the United States and the Union. European

Spain, leads the growth of the large industrialized economies in 2018, according to the IMF
Latin America recovers, says the report. In Argentina, the Fund expects more inflation and less growth for 2018. The growth projection for Brazil improved for 2018 and 2019. The projection of Chile’s GDP for 2018 was high, placing it at 3.4%.
In Colombia, the IMF see the possibility of changes in economic policy. The growth estimate for 2018 and 2019 remains unchanged in Mexico
The crisis in Venezuela will cause prices to rise by 1,811,751% in two years, according to the forecasts of the IMF The country’s economy will contract 15% this year and fall by 6% in 2019, according to the Fund, which warns of the humanitarian crisis, and by 2018, an inflation of almost 14,000% is expected.
The deputy for Caracas José Guerra, highlighted the historical context of the degree of destruction of Venezuela that reflects the report of the IMF .

Overall the report represents an improvement in global growth of 3.8 percent seen last year.

However, the Fund warns that the “growth momentum is not assured”, given the trade tensions between the United States. and China and the expected reversal of the positive effects of tax cuts in the United States.
The IMF’s chief economist, Maurice Obstfeld, stressed that the trade conflict could harm the world economy if it spreads to other countries, and said that even the prospect of a trade war could harm.
“There will be no winners in a trade war,” he told reporters, noting that uncertainty alone could curb investment.
While it is difficult to predict how things will develop, “I suspect that if you keep digging into economic expansion, it could change and bite you,” Obstfeld warned.
The report notes that the extensive tax cuts approved in the US will drive more growth only until next year, and after that “it will reduce momentum”.
The IMF raised its forecast for the United States by two tenths for both years, to 2.9 percent in 2018 and 2.7 percent in 2019, which follows the major upward revisions in the October report, due to the impact fiscal.
However, Obstfeld warned that the stimulus was “largely temporary.”
With information of AFP

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