Thursday, October 30th10.6°C
23696
23129

IMF turns slightly more optimistic about US and global economic growth for 2014

WASHINGTON - The International Monetary Fund is slightly more optimistic about the global and U.S. economies this year than it was three months ago.

In an updated outlook released Tuesday, the global lending organization forecasts that the world economy will grow 3.7 per cent in 2014 and that the U.S. economy will grow 2.8 per cent. The global forecast is 0.1 percentage point higher and the U.S. forecast 0.2 point higher than the IMF's October forecast.

After a sluggish start, global economic growth picked up in the second half of 2013. As a result, growth amounted to 3 per cent last year. The IMF expects it will be even stronger growth this year.

"The recovery is indeed strengthening, but as we have said many times in the past, much work remains to be done," IMF chief economist Olivier Blanchard said Tuesday during a conference call.

The IMF forecasts that the U.S. economy grew 1.9 per cent last year. And its 2.8 per cent forecast for this year would match U.S. growth in 2012. Part of the anticipated improvement is based on expectations for less drag from higher U.S. taxes and across-the-board spending cuts.

By 2015, the IMF forecast the U.S. economy will grow 3 per cent, or 0.4 percentage point lower than its October forecast. The IMF reduced its outlook because a recent budget agreement left in place most of the spending cuts. The IMF had expected most of those cuts to have been eliminated by next year.

For the countries in Europe using the common euro currency, the IMF forecasts stronger growth. The region is emerging from recession after a lingering debt crisis.

Economic activity shrank 0.7 per cent in 2012 and 0.4 per cent in 2013. But this year the IMF projects 1 per cent growth and 1.4 per cent in 2015.

Germany, the biggest economy in Europe, will grow 1.6 per cent this year it projects, up from 0.5 per cent growth in 2013.

China is expected to grow 7.5 per cent in 2014 and 7.3 per cent in 2015. Both 2014 and 2015 projections were slightly higher than the IMF's October forecast, but lower than the 7.7 per cent growth reported for 2013.

The IMF said that growth in China, the world's second-largest economy, had rebounded strongly in the second half of 2013 due to acceleration in investment. But the IMF said the growth will moderate because of actions by the government to slow growth in credit.

For Japan, the IMF forecast growth of 1.7 per cent this year, the same as 2013, but a slowdown to 1 per cent growth in 2015.

The IMF said that the United States and other major economies should be careful not to pull back prematurely on the economic support being provided by the Federal Reserve and other central banks. That's because unemployment in many countries remains high and inflation is low.

The Canadian Press


Read more Business News

23630


Recent Trending




Today's Market
S&P TSX14458.69-68.88
S&P CDNX771.65-9.42
DJIA17195.42221.11
Nasdaq4566.138+16.912
S&P 5001994.65+12.35
CDN Dollar0.8932-0.0003
Gold1199.90+1.30
Oil80.72-0.18
Lumber322.40-1.20
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.11+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.150.00
Cantex0.045-0.015
Anavex Life Sciences0.1711-0.0089
Metalex Ventures0.0350.00
Russel Metals32.22-0.35
Copper Mountain Mining1.97-0.05
Colorado Resources0.14+0.005
ReliaBrand Inc0.012-0.004
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.375+0.005

 





FEATURED Property
20242472007 Manufactured Home - 66' x 15-8", #100 McDougall Creek Estates Mobile Home Park
$83,000
more details
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


22771