IMF foresees global economy accelerating to 3.5 pct. in '17

U.S. Vice President Mike Pence arrives at the border village of Panmunjom in the Demilitarized Zone which has separated the two Koreas since the Korean War South Korea Monday

IMF Economic Counsellor Maurice Obstfeld said the economic data showed "a significant pick up this year relative to last", and said the trend began in the middle of 2016, after which "everything seems to be going in the right direction ... fueling our confidence that this year and next year are going to be substantially better", he said.

"We also support the authorities' initiatives to improve the Conditional Cash Transfer Program, raise investment in education and health, and increase agricultural productivity by removal of the quantitative restrictions on rice imports and promoting secure land titles in agriculture, which could be used as collateral for bank loans", he added.

Turning to matters global, the Washington-based institution's new World Economic Outlook report expects growth of 3.5% overall this year. The meetings come against the backdrop of a gradually strengthening global picture, especially in many emerging economies, despite resistance to free trade and political unrest in some countries. The group expects the global economy to grow by 3.6% in 2018.

The once-super-charged Chinese economy began a long slowdown, driving down global commodity prices and hurting countries from Australia to Zambia that fed raw materials to the world's second-biggest economy.

Christine Lagarde, managing director of the International Monetary Fund (IMF), at the Institute of International Finance G-20 Conference in Frankfurt, Germany, last month. China's economy has steadied, thanks to government spending and an easy-money credit boom.

The IMF said record low interest rates of 0.25% were appropriate given that growth was expected to slow and inflation was likely to peak at 2.5% this year.

Rising commodity prices on the back of higher demand and oil prices pushed up by tighter supply have contributed to the more optimistic global outlook by boosting inflation and reducing deflationary pressures, the global financial body said.

Members of the OPEC cartel of oil exporters, mostly from the region, agreed past year 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 told the newspaper that the United States was far less protectionist than China and Europe, "and every time we do anything to defend ourselves, even against the puny obligations that they have, they call that protectionism".

"Policy must address these disparities head-on to ensure the stability of an open, collaborative trading system that benefits all", he added.

Protectionist candidates are polling well ahead of the first round of the French elections on Sunday, while in Britain and the US 2016 saw votes for Brexit and Donald Trump that were partly driven by isolationism.

However, the International Monetary Fund has also listed further reforms that India must undertake, including replacing the demonetised currency and reducing labour and product market rigidities to ease firm entry and exit, expand the manufacturing base, and gainfully employ the abundant pool of labor. "Over the medium term, as prices increase further, technical improvements in unconventional oil recovery will be reactivated, which will eventually set off another price cycle", International Monetary Fund experts wrote.

The U.S. says its policies or threats don't amount to protectionism, but rather are an effort to rebalance distorted trade relationships.

Related:

Comments

Latest news

Arconic CEO resigns amid pressure from Elliott
Alcoa split in two in November 2016, creating Arconic for its growth-oriented businesses such as aerospace and automotive. With Kleinfeld's resignation, Elliott Management's core objective - a CEO change - has been realized, Arconic stated.

Mobile to carry the Motorola Moto Z2 Force
We already know that there's going to be a Moto Z2 this year too, and that will obviously serve as the successor to the Moto Z. The report adds both phones will use a MediaTek chipsets, though according to this Moto C Plus will have 64-bit processor.

Surveillance video released, second person arrested in Chandler tattoo shop shooting
CCTV catches the moment bullets - which were allegedly aimed at a tattoo shop next door - whizz past the child's head. Hart was arrested and faces a number of charges, including aggravated assault with a deadly weapon and endangerment.

New SUV Audi Q8 to be produced only in Bratislava
AUDI IS MOVING FAST to capitalize on the booming SUV market by rolling out a model to fill the gaps in its current line-up. The 2019 Audi Q4 will be built using Volkswagen's MQB platform, the same one that was used for the second-generation Q3.

Fairfield woman at risk for deportation to stay until court rules
Federal authorities contend Trujillo Diaz entered the United States illegally in 2002 and has exhausted her appeals. In a statement ICE says, "The removal will go forward unless the court renders a decision on the pending petition".

Crystal Palace v Leicester City
Wilfried Zaha and Andros Townsend had yet to be born when this occurred. "Unfortunately for me, players forgot", said Allardyce. The Belgian global striker scored the equaliser as Palace fought back from two goals down to earn a point at Selhurst Park.

Walmart Is Giving New Discount Offers On Product Picked From Its Warehouses
Indeed, the company said earlier this year that it was looking at its corporate headcount for ways to operate more efficiently. For the customer, it's a trip to Walmart , which many will be happy to do if they just saved tens or even hundreds of dollars.

Chinese, US officials exchange views on Korean Peninsula situation
Our "very powerful" armada will make its way to the Korean Peninsula eventually, but apparently no one's in any rush. He suggested plans to deploy a USA missile defense system in South Korea were damaging its relations with China.

Man accused of Facebook-video murder found dead after chase
After a brief chase, Stephens stopped his vehicle, Williams said. "What happened today was senseless", Williams said. Marshal Peter Elliott said that his auto had no Global Positioning System tracking capabilities.

Bank of America profits jump, helped by interest rates
In this Thursday, April 13, 2017, photo, a man uses a Bank of America ATM near the company's headquarters in Charlotte, N.C. The banking giant repurchased a net of $2.3 billion in common stock and paid out $0.8 billion in common stock dividends.

Telangana hikes quota for Muslims, tribals
KCR exhibited belligerence when he said: "I will not beg the Centre, but am going to fight to get the Bill implemented". Citywise, Hyderabad has the largest concentration whereas Khammam has the loswest population of Muslims.

Police helicopter crashes in southeastern Turkey
Contact was lost with the Sikorsky S-70 Blackhawk-type helicopter at 11.50 a.m., Soylu told journalists. The region is home to the Munzur mountains, where local media reported heavy fog.

Revamped Mercedes S-Class to hit showrooms in July
Meanwhile, there are also changes to how the car's self-driving status is communicated to the person behind the wheel . The S560 and S560 4Matic use a new 4.0-liter twin-turbo V8, with 463 hp and 516 lb-ft.

PayPal heads in-store with Android Pay and Wells Fargo
Being introduced in the USA first, users will be able to use PayPal in Android Pay at all retailers accepting Android Pay . All current Android devices that support Pay (4.4 KitKat and above) will have access to the PayPal integration.

Sturgeon: May election move 'huge miscalculation'
Mr Rennie continued: "Our optimistic agenda is pro-UK, pro-EU and progressive". The snap election is a major gamble for the Tories.

Other news