By Kamila Aliyeva
Emerging and developing Asia will grow at around 6.5 percent over 2018–2019, broadly the same pace as in 2017, according to the IMF’s updated World Economic Outlook.
The region continues to account for over half of world growth, the report said.
“Global economic activity continues to firm up. Global output is estimated to have grown by 3.7 percent in 2017, which is 0.1 percentage point faster than projected in the fall and one second percentage point higher than in 2016. The pickup in growth has been broad based, with notable upside surprises in Europe and Asia,” the report noted.
Global growth forecasts for 2018 and 2019 have been revised upward by 0.2 percentage point to 3.9 percent.
The revision reflects increased global growth momentum and the expected impact of the recently approved U.S. tax policy changes, according to the IMF.
Growth this year and next is projected to remain above 2 percent in the Commonwealth of Independent States, supported by a slight upward revision to growth prospects for Russia in 2018.
“Risks to the outlook are broadly balanced in the near term, but—as in the October 2017 WEO—remain skewed to the downside over the medium term. One notable threat to growth is a tightening of global financing terms from their current easy settings, either in the near term or later,” the report said.
The International Monetary Fund (IMF) is an organization, headquartered in Washington, U.S., working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Created in 1945, the IMF is governed by and accountable to the 189 countries that make up its near-global membership.
Unlike the World Bank, IMF activities focus on relatively short-term macroeconomic crises. The World Bank provides loans only to poor countries, the IMF can lend to any of its member countries that is short of foreign currency to cover short-term financial obligations.
Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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