New York — The International Monetary Fund (IMF) predicts that the world economy’s strongest upswing since 2011 will continue for the next two years, but warns that the seeds of its demise have already been planted. The fund on Tuesday left its forecasts for global growth this year and next at the 3.9% it estimated in January and raised its outlook for the US as Republican tax cuts take effect. Beyond that horizon, it was more pessimistic, projecting global growth will fade as central banks tighten monetary policy, the US fiscal stimulus subsides, and China’s gradual slowdown continues. "Global growth is projected to soften beyond the next couple of years," the IMF said in its latest World Economic Outlook report. "Once their output gaps close, most advanced economies are poised to return to potential growth rates well below pre-crisis averages, held back by aging populations and lacklustre productivity." The IMF warned the expansion could be derailed if countries resort to tit-for-...
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