Global economy relies less on US and UK for recovery, says IMF
The fund’s outlook for global growth is unchanged, but the drivers of the rebound are shifting
Washington — The world is leaning less on its biggest economy to sustain the global recovery, according to the International Monetary Fund (IMF). The fund left its forecast for global growth unchanged in the latest quarterly update to its World Economic Outlook, released in Kuala Lumpur on Monday. The world economy will expand 3.5% this year, up from 3.2% in 2016, and by 3.6% next year, the IMF said. The forecasts for this year and next are unchanged from the fund’s projections in April. Beneath the headline figures, though, the drivers of the recovery are shifting, with the world relying less than expected on the US and UK and more on China, Japan, the eurozone and Canada, according to the Washington-based IMF. The dollar fell to its lowest in 14 months last week as investors discounted the ability of President Donald Trump’s administration to deliver on its economic agenda after efforts by the Republican Senate to overhaul health care collapsed. The IMF estimated US growth at 2.1%...
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