IMF boosts U.S. growth forecasts

U.S. President-elect Donald Trump leaves a press conference in Trump Tower, Manhattan, New York, U.S., January 11, 2017. REUTERS/Shannon Stapleton

U.S. President-elect Donald Trump leaves a press conference in Trump Tower, Manhattan, New York, U.S., January 11, 2017.

http://www.reuters.com/article/us-imf-growth-idUSKBN1501P9

The International Monetary Fund on Monday said the U.S. economy would grow faster than previously expected in 2017 and 2018 based on the incoming Trump administration’s tax and spending plans, but it kept its global growth forecasts unchanged due to weakness in some emerging markets.

Updating its World Economic Outlook, the IMF forecast overall global growth at 3.4 percent for 2017 and 3.6 percent for 2018, unchanged from October. That compared to 3.1 percent in 2016, the weakest year since the 2007-2009 financial crisis.

It estimated a modest fiscal stimulus under President-elect Donald Trump would push U.S. gross domestic product growth to 2.3 percent in 2017, a gain of 0.1 percentage point on the last forecast, and to 2.5 percent in 2018, up 0.4 percentage point.

The IMF noted, however, that Trump’s plans for expansionary fiscal measures including tax cuts and infrastructure spending also could stoke inflation in an economy already nearing full employment.

“If a fiscally-driven demand increase collides with more rigid capacity constraints, a steeper path for interest rates will be necessary to contain inflation, the dollar will appreciate sharply, real growth will be lower, budget pressure will increase, and the U.S. current account deficit will widen,” IMF chief economist Maurice Obstfeld said in a statement.

That would increase the likelihood of more protectionist U.S. trade measures and retaliatory responses, Obstfeld told a news conference.

“In that scenario, all countries would lose out,” he added.

But the new IMF outlook does not include any assumptions regarding Trump’s trade plans, such as potential tariffs on Mexican and Chinese goods, as there seems to be less of a political consensus surrounding them, Obstfeld said.

The IMF does assume a stronger dollar, firmer oil prices and “more inflationary pressure and a less-gradual normalization of U.S. monetary policy.”

———

“the U.S. economy would grow faster than previously expected in 2017 and 2018 based on the incoming Trump administration’s tax and spending plans”

the donald effect..

“Trump’s plans for expansionary fiscal measures including tax cuts and infrastructure spending also could stoke inflation in an economy already nearing full employment.”

having a bet each way..

401

Advertisements

~ by seeker401 on January 19, 2017.

5 Responses to “IMF boosts U.S. growth forecasts”

  1. yday He tweet thisPresTrump from his official-acct ” Got to do something about these missing chidlren grabbed by theperverts.
    was like tell them in THEY face stop THEY- nonsense or be consequences
    tday we don’t know were is that Tweet in His-feed strange b/c was from oct-8 2012 ? but show up in our-feeds yday strange? is good b/c what ever is doing it is a warning to-THEY

  2. our economy is near full employment – hahaha!!

  3. yup Seek but why? b/c is in THEY face &wikileaks tday bring morePizzaGate

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: