The IMF, which is holding its spring meetings with the World Bank in Washington this week, forecast that the global economy would grow at a rate of 3.5 percent in 2017, up from its previous forecast of 3.4 percent in January, on the back of improving manufacturing and trade in many developed countries.

In its latest World Economic Outlook, the Fund said that chronically weak advanced economies were expected to benefit from a “cyclical recovery in global manufacturing and trade that started in the second half of 2016.”

“Aside from the conjectural policies and uncertainties, a distinct threat comes from the growth in advanced economies of domestic political movement, skeptical of the international economic integration,” IMF chief economist Maurice Obstfeld said.   

Read also: Indonesia gears up for annual IMF-World Bank meeting)    

While he did not specifically point to the Trump administration's "America First" trade agenda, he warned that such policies would lead to trade warfare that could result in higher prices for consumers as well as lower productivity and reduced real income for households.

Trade protectionism is expected to be specifically addressed at the semi-annual gathering of finance officials from the IMF, the World Bank and the Group of 20 major economies this week. (ags)

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