The International Monetary Fund has upgraded its economic outlook for the United States in 2018 and foresees a strong year for the global economy as well. But its chief economist warns that the prospect of an escalating trade conflict “threatens to undermine confidence and derail global growth prematurely.”
The IMF predicted today that the U.S. economy will grow 2.9% this year, up from the 2.7% it had forecast in January and from the 2.3% growth the economy achieved last year. The U.S. economy will enjoy a boost through 2020 from tax cuts President Donald Trump signed into law in December, the IMF predicts.
The lending agency kept its forecast for worldwide growth this year at 3.9%, which would be its fastest pace since 2011. The world’s major regions are expanding in unison for the first time in a decade, aided by low interest rates and a revival in global trade. The IMF expects trade to grow 5.1% this year, which would be the fastest pace since 2011.
The IMF issued the update to its World Economic Outlook on the eve of spring meetings in Washington this week of the 189-nation IMF, the World Bank and the Group of 20 major economies.
