International Monetary Fund improves economic growth forecasts for Romanian economy in 2017, 2018

In its latest World Economic Outlook, the International Monetary Fund said it now expects the British economy to expand by two per cent in 2017, up from January's forecast of 1.5 per cent. In the report, the fund projected the global economy will grow 3.5 percent this year, up from its January projection of 3.4 percent and a 3.1 percent annual growth rate in 2016.

International Monetary Fund did not give forecast for 2018 in its previous "World Economic Outlook" report.

The IMF upgrades Australian GDP to 3.1 percent for 2017, from 2.5 percent in 2016, and at 3 percent for 2018.

Unemployment rate would be the same 6.0 percent in 2017 as in 2016, according to the IMF's data.

The IMF's latest forecast for Romania's economic growth is more pessimistic than the government's expectations.

The IMF does warn of downside risks to its optimistic forecast, including "the threat of deepening geopolitical tensions", the possibility rising U.S. interest rates will squeeze economic growth and rattle financial markets and the threat that protectionist measures will damage global trade.

The WEO raised its projection for 2017 global growth to 3.5 per cent, up from its recent forecast of 3.4 per cent. The projection for next year was left unchanged at 3.6%.

As IMF's managing director Christine Lagarde has outlined already last week from Brussels, there are "downside risks stem from several potential factors" that could undermine growth.

Members of the OPEC cartel of oil exporters, mostly from the region, agreed a year ago to reduce output by 1.2 million barrels per day from January 1 for six months, to support crude prices that had shed half of their value since mid-2014.

He said that fiscal indicators were better than the target, while the deficit was reduced to 1.4 percent of GDP, the lowest level since 2005, as public debt fell to 74 percent of GDP in 2016.

"One salient threat is trade protectionism, leading to trade warfare", Maurice Obstfeld, the IMF's chief economist, said on Tuesday, presenting the World Economic Report.

The IMF said China has made some progress in reducing its industrial production overcapacity, but noted that the economy continues to rely on government stimulus and rapid credit expansion to maintain growth.

  • Zachary Reyes