IMF Raises Global Growth Forecasts, But Says Recovery Incomplete

The number of people employed in the casual'gig economy has surged through the launch of services such as Uber

The number of people employed in the casual'gig economy has surged through the launch of services such as Uber

The report projected India to regain the top spot next year with a 7.4 percent gross domestic product (GDP) growth rate.

"Growth is expected to rise gradually", it said, while noting that the rate would be uneven and "barely above population growth".

In its latest World Economic Outlook, the organisation said it still expects United Kingdom growth to drop to 1.7% in 2017 from 1.8% in 2016, and slow even further in 2018 to 1.5%.

But they are at the low end of the spectrum of estimates made by the IMF and four other worldwide organisations with the UN Department of Economic and Social Affairs (UNDESA) putting it at 7.3 percent.

The Washington-based International Monetary Fund is now estimating Canada's gross domestic product for 2017 will be 3.0 per cent - half a percentage point higher than its July estimate.

The IMF said in its latest World Economic Outlook report that the region would grow by 2.6 percent this year after 1.4 percent in 2016.

That said, the recovery is incomplete, the International Monetary Fund said, citing low wage growth, challenges faced by commodity exporters, subdued trends of productivity and demographics.

The Goods and Services Tax (GST) was implemented in India from July 1 this year. For next year it was projected at 3.7 percent.

Such a performance would mean the economy falling behind its biggest rivals in growth terms after being the second-fastest in the G7 a year ago despite the Brexit vote. "We see an accelerating cyclical upswing boosting Europe, China, Japan, and the United States, as well as emerging Asia".

The IMF also said Asia's fourth-largest economy could grow by 3 percent in 2018 up from its previous estimate of 2.8 percent posted in April.

"Strong government spending and data revisions in India led to an upward revision of 2016 growth to 7.1 per cent (6.8 per cent in April), with upward revisions of about 0.2 percentage point, on average, for 2014 and 2015", it said.

"In India, simplifying and easing labour market regulations and land acquisition procedures are long-standing requirements for improving the business climate", the report said.

There is a wide range in the projections by different agencies, ranging from the 7.3% for this year and 7.9% for the next year made by the UNDESA in May to Asian Development Bank's projection last month of 7% for this year and 7.4 for next year. In July, the Bank of Korea marked up its growth outlook for this year to 2.8 percent from its previous estimate of 2.6 percent.

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