India to grow at 7.4 per cent in 2018

CHINA-ECONOMY-IMF

The worldwide lender released its World Economic Outlook report in Washington DC on Tuesday, ahead of the IMF/World Bank Group Spring Meetings. The country's fiscal position is "strong" and there is no need for faster debt reduction beyond what the government has already outlined, the International Monetary Fund said.

The IMF upgraded its forecast for the 19-country eurozone to 2.4 percent - which would be its best showing since 2007 - and up from the 2.2 percent it predicted three months ago.

China is projected to grow 6.6 percent this year, decelerating from 6.9 percent growth in 2017.

The IMF, in its latest World Economic Outlook, kept its global growth forecasts for both 2018 and 2019 unchanged at 3.9 percent after upgrades in January that were partly based on expectations of stronger USA spending spurred by tax cuts.

That said, Mr Obstfeld describes longer-term prospects as "more sobering".

The International Monetary Fund has said the tax cuts introduced by the Trump administration will give a temporary boost to the United States economy, but the tax reform effects will wear off in two years time.

"The growth rate in China is projected to soften down during this period", it said, adding that over the medium term, its economy is projected to continue re-balancing away from investment toward private consumption and from industry to services, but nonfinancial debt is expected to continue rising as a share of GDP, and the accumulation of vulnerabilities clouds the medium-term outlook.

US President Donald Trump pondering missile attack on Syria
Theresa May is reportedly adamant that the United Kingdom plays an equal part in any military action against Syria . "There has been no decision to take military action at this point".

A preliminary assessment made by the International Monetary Fund concluded that while assets tied to cryptocurrencies don't pose an immediate danger to the global financial system because their footprint is still small, they have the potential to magnify the risks and increase the transmission of economic shocks. If the government's broader housing policy agenda is fully implemented, that "would address most of the potential problems associated with foreign buyers on a less discriminatory basis", it said.

Canada's leaders are hitting a lot of these notes.

House attributes the rosier USA outlook to federal tax cuts, a massive US$300-billion spending package and the possibility of an additional spending or infrastructure bill.

The IMF has also strongly criticised the approach of the Trump administration to trade deficits.

The global recovery is supported by "strong momentum, favorable market sentiment, accommodative financial conditions, and the domestic and worldwide repercussions of expansionary fiscal policy in the United States", the IMF said.

According to the IMF's World Economic Outlook (WEO), the country's economic growth is expected to be 7.8 per cent in 2019. The Fund, as it is known, is one of the world's biggest holders of gold. Those tax cuts are stoking inflation, which will force the U.S. Federal Reserve to raise interest rates.

"This IMF Statement follows recent positive reviews from the major credit rating agencies of our Government's economic plan and different priorities", Grant Robertson says. But he may also have created the conditions for the next recession.

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