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IMF optimistic over emerging markets, less upbeat on US
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The International Monetary Fund (IMF) research department deputy director Gian Maria Milesi-Ferretti (left), economic counselor and director of research Maurice Obstfeld (center) and press officer Ting Yan pose for the media in Kuala Lumpur on July 24. (JP/Arif Gunawan Sulistiyono)
T
he International Monetary Fund (IMF) has expressed optimism over the economic outlook for emerging markets and developing economies while it is less upbeat about the United States economy.
In the IMF’s April World Economic Outlook report, global output was projected to grow by 3.5 percent in 2017 and 3.6 percent in 2018. It revised growth for emerging markets and developing economies to 4.6 percent this year from last year's 4.3 percent projection.
The projected growth rates — although higher than the 3.2 percent estimated for 2016 — were below precrisis averages, especially for most advanced economies and for commodity-exporting emerging and developing economies.
“The distribution of this growth around the world has changed […] Notable compared with the not-too-distant past is the performance of the euro area, where we have raised our forecast. But we are also raising our projections for Japan, for China and for emerging and developing Asia more generally,” IMF chief economist Maurice Obstfeld said at a media conference on Monday.
Meanwhile, the US growth projections were revised downward to 2.1 percent in 2017 and 2018, primarily reflecting the assumption that fiscal policy would be less expansionary going forward than previously anticipated.
“Growth has been revised upward for Japan and especially the euro area, where positive surprises to activity in late 2016 and early 2017 point to solid momentum. China’s growth projections have also been revised upward, reflecting a strong first quarter of 2017 and expectations of continued fiscal support,” Obstfeld said. (ags)
