International Monetary Fund foresees global economy accelerating to 3.5 pct. in '17

A view of the Moscow City business centre

A view of the Moscow City business centre

"Growth is projected to rise to 2.6 percent in 2017 and 3.5 percent in 2018, largely driven by specific factors in the largest economies, which faced challenging macroeconomic conditions in 2016", the outlook read.

Growth is also predicted to slow sharply in Iran, to 3.3 per cent in 2017, from 6.5 per cent a year ago when the Islamic republic won a boost from the lifting of economic sanctions.

The AFP reports that Maurice Obstfeld, IMF chief economist, said global growth will continue with the help of advanced economies and emerging low income countries.

"Acceleration will be broad based across advanced, emerging, and low income economies, building on gains we have seen in both manufacturing and trade", Obstfeld said.

The latest analysis was released ahead of meetings between finance ministers and central bank governors from the G20, who will gather in Washington, D.C., later this week. Treasury Secretary Steven Mnuchin on Monday told the Financial Times the administration's plan to roll out tax reform would likely slip as a result of the Republican-led healthcare overhaul bill. Those and other headwinds are expected to keep world growth capped at 3.8% for the foreseeable future, according to the IMF's long-term outlook. China's economy has steadied, thanks to government spending and an easy-money credit boom.

In an interview with the Leading European Newspapers Alliance, IMF Managing Director Christine Lagarde said that in the long run it makes sense for the Greek primary budget surplus to amount to 1.5 percent of GDP, contrary to the German view in favor of a 3.5 percent primary surplus.

Massive US bomb death toll rises to 94
According to him, the bombing was necessary because some of the tunnels were as deep as 40 meters and extremely hard to penetrate. Wali said dozens of other villagers also came out of homes and later he went near the border, where he met with other residents.

Members of the OPEC cartel of oil exporters, mostly from the region, agreed previous 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. "Financial markets are buoyant and expect continued policy support in China and fiscal expansion and deregulation in the United States". Investors expect the Chinese government to continue supporting economic growth.

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.

Meanwhile the protectionist risk is emerging on the global horizon, around which International Monetary Fund director Christine Lagarde has already raised the alarm and sparked controversy with Donald Trump's administration. They include "the threat of deepening geopolitical tensions", the possibility that rising US interest rates will squeeze economic growth and rattle financial markets and the threat that protectionist measures will damage global trade.

Moreover, spillovers from slower growth in China or higher global financial volatility should be manageable for the Philippines because of its strong economic fundamentals, ample policy space, and limited trade and financial linkages with China, Peiris said.

Trump has already pulled the US out of one vast trade deal in the Pacific.

Wealthy economies also face deeper problems, in particular chronically weak growth in productivity - the output produced per hour of work - and aging workforces.

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