Taiwan expects 2% GDP growth as International Monetary Fund forecasts 1.7% for 2017

In other advanced economies, the fund raised Japan's 2017 growth projection from 0.8 percent to 1.2 percent, the European Union forecast from 1.6 percent to 1.7 percent, China's projection from 6.5 percent to 6.6 percent, and the United Kingdom's growth forecast from 1.5 percent in January to 2.0 percent.

The fund's semi-annual World Economic Outlook report revised global growth up to 3.5 per cent for this year, one-tenth higher than the January forecast.

This is below the Department of Finance's revised estimate of 4.3 per cent growth for 2017.

The IMF, whose spring meetings with the World Bank get underway in Washington this week, forecast that the global economy would grow 3.5% in 2017, up from its previous forecast of 3.4% in January.

Luxembourg's growth remains strong compared with the average of the eurozone (1.7% for 2017, 1.6% for 2018) but also seems to suffer a stronger slowdown overall.

Unemployment will drop from 12.9% in 2016 to 11.3% this year and even reaching 10.2% in 2019. Protection threats to growth in Europe were also highlighted by International Monetary Fund economists, just days ahead of the first round of the French presidential election. The country is expected to log 6.6 percent growth in 2017 with its economy to expand 6.2 percent in 2018.

The world economy is getting stronger and growth is picking up, as indications grow that the hangover from the financial crisis is fading at last. Its UK growth forecast was significantly boosted from 1.5 percent to 2.0 percent this year, slowing to 1.5 percent in 2018.

But he added, "Despite the IMF's optimistic bias, we think its current forecasts for global growth are about right".

Turning to inflation, the International Monetary Fund predicted the increase in energy prices and sterling's depreciation will push United Kingdom inflation up to 2.5% for the whole of 2017, but said it would fall back to the Bank of England's 2% target over the next few years. With persistent structural problems - such as low productivity growth and high income inequality - pressures for inward-looking policies are increasing in advanced economies. Significant growth is also expected in commodity importing countries, notably China. The projection for next year was left unchanged at 3.6%.

The ministry expressed optimism Tuesday toward a recovery this year, given that Taiwan has reported export growth for six months in a row and a growth in export orders for seven consecutive months. In addition to the oil output cuts due to the OPEC agreement, the low growth expected for 2017 comes from fiscal adjustment policies.

  • Zachary Reyes