Global Recession: IMF Slashes UK Economic Growth Rating For 2017Business, Featured, Latest News, Money & Capital Market Tuesday, October 4th, 2016
BALTIMORE, MD (AFRICAN EXAMINER) – The impacts of Brexit on UK fortunes are still counting as the International Monetary Fund (IMF) just cut its forecast – rating for her economic growth next year.
This is amidst the speculation and warning that the global recovery will remain “weak and precarious”.
Unlike the its prediction which raised UK GDP growth this year to 1.8 per cent, the IMF has cut the figure to 1.1 per cent for 2017.
IMF assumptions are based on the “smooth post-Brexit negotiations as well as limited increase in economic barriers”.
The forecast as contained in the IMF’s latest World Economic Outlook predicted “subpar” 3.1 per cent global growth for this year, forecasting a slight rise in 2017.
The IMF latest global economic outlook also indicated that a fall in the US growth this year to 1.6 per cent, down from the previous 2.2 per cent forecast, will be offset by increases in countries such as Japan, Germany and Russia and India.
The indicator added that the indifferent economic recovery after the global financial crisis has been a persistent theme, in the Fund’s regular World Economic Outlook reports.
The latest report, it said, warned against danger of a pattern of underperformance becoming entrenched.
“Taken as a whole, the world economy has moved sideways. Without determined policy action to support economic activity over the short and longer terms, sub-par growth at recent levels risks perpetuating itself” hinted the Chief economist Maurice Obstfeld.
Weak growth can lead to lower investment, slower productivity growth and the erosion of what the IMF calls “human capital” – which means skills and expertise.
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