Washington — The International Monetary Fund (IMF) is taking a cautious stance towards the policies of US president-elect Donald Trump, who takes office this week, assuming only a modest boost to the US economy from his promise of fiscal stimulus. The IMF maintained its forecast for global growth in 2017 of 3.4%, the Washington-based organisation said Monday in a quarterly update to its World Economic Outlook. Expansion for 2018 is forecast at 3.6%, also unchanged from the fund’s previous forecast in October. The impact of a Trump administration is one of the biggest unknowns facing the global economy. While Trump has promised to cut taxes and boost infrastructure spending, he has also threatened to impose tariffs on trade partners such as China and Mexico. Such punitive measures may sap growth if they provoke retaliation. Trump’s policy priorities will become clearer after his inauguration on January 20 in Washington. The high degree of uncertainty about what is in store for US eco...
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