Most often, the International Monetary Fund (IMF) makes more pessimistic predictions than other similar institutions as for the state of the global economy. This time however, with July 2017’s world economic outlook update, the IMF has brought some optimism assessing that “the pickup in global growth anticipated in the April outlook remains on track.”
Indeed, global growth projections forecast at 3.5 and 3.6 percent world economic growth in 2017 and 2018 respectively remained unchanged. In line with previous information made available on Cyceon’s website, Europe and Asia’s contributions to growth will be increasing while those of the US, UK and BRICS member-countries Russia, Brazil and India will be decreasing.
Overall, the cyclical recovery continues, the IMF underlined, and that’s good news for investors who might have to search for greater growth potential outside the United States where stocks markets have reached all-time highs a number of times lately. Also, the question will now be how (and if) the Fed will react to the IMF forecast and whether it will change its rate hike plans accordingly.