'India expected to grow at 7.4% in 2018'

18 April, 2018, 00:26 | Author: Franklin Nunez
  • IMF saves forecast of Ukraine's GDP growth at rate of 3.2 percent

While smartphone sales totalled 1.5bn units past year - enough for one of every five people on the planet - shipments declined for the first time on record, the International Monetary Fund said on Tuesday.

The IMF stuck to its most recent world growth forecast of 3.9 per cent for both this year and next.

The IMF listed several factors that could drag on growth, including rising protectionism, escalating political and trade tensions, and "waning popular support for global economic integration".

The International Monetary Fund on Tuesday revised upwards its 2018 growth forecast for Italy, from 1.4% to 1.5%, following 1.5% previous year.

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This year's unemployment has been forecast at 3.0 percent up from 2.9 last year with an outlook for 3.2 percent in 2019.

But it added that the "recapitalisation should be part of a broader package of financial reforms to improve the governance of public sector banks, and banks' debt recovery mechanisms should be further enhanced".

"That major economies are flirting with trade war at a time of widespread economic expansion may seem paradoxical, especially when the expansion is so reliant on investment and trade", Obstfeld told a news conference ahead of the International Monetary Fund and World Bank spring meetings this week, where trade is expected to dominate discussions.

Germany, France and the USA have been upgraded over the next two years by more than the United Kingdom, which now ranks in the second tier of G7 nations with annual growth of less than 2 per cent alongside Italy and Japan.

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It forecasts the Irish economy to grow at 4.5% this year and 4% next year.

The IMF official said that these trends are more due to technology change than to trade, and even in countries where trade backlash is not prominent, public skepticism about policymakers' ability to generate robust and inclusive growth has spread. Trump, who campaigned on a pledge to protect USA industries from what he argues is unfair foreign competition, has slapped tariffs on steel and aluminum imports.

That's lower than the 8.9% forecast in October, and is also less than the raised 7.4% estimate for Ivory Coast and the prediction for Ethiopia, which was held at 8.5%. It projected that in general, the global economy would grow by 3.9 percent.

But for the next few decades, the risks to the global growth forecasts were broadly balanced, it added, with the potential for stronger business profits to increase hiring and investments that could boost productivity.

Donald Trump promises to protect states with legalized marijuana
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