Global Economic Analysis and News of Note: World Economy “Seems To Be Gaining Momentum”
- The International Monetary Fund (IMF) issued its updated economic growth estimates for 2017 and 2018 last week, noting that the “global economy seems to be gaining momentum.” According to the IMF, the world economy will grow by 3.5 percent this year and 3.6 percent next year. That’s an improvement over 2016’s 3.1 percent rate. The U.S. economy is expected to expand 2.3 percent in 2017 and 2.5 percent in 2018 while the Canadian economy is likely to expand by 1.9 percent this year and two percent next year. The IMF expects China’s economy to grow 6.6 percent in 2017 and 6.2 percent in 2018 while Japan’s is expected to expand 1.2 this year. Growth in the euro area will be around 1.7 percent in 2017, the IMF said, while growth in the United Kingdom will hit two percent for the year, a significant improvement from 2016’s 1.5 percent expansion rate.
- The Chinese economy grew at a 6.9 percent annualized rate in the first quarter of 2017, the fastest rate in more than a year-and-a-half. The expansion was driven partly by an increase in steel production.