"Fiscal policy should support growth and potential output, as well as being inclusive", he told a briefing on the "World Economic Outlook Update" here today.
Global growth forecasts were left unchanged at 3.5% for 2017 and 3.6% for next year, with the report stating that stronger than expected performances in the Eurozone, China and Japan would be likely to offset more sluggish performances around the globe.
Non-oil growth projection was also lowered to 1.7 percent from 2.1, the worldwide financial body said.
The British economy will expand by 1.7% this year, 0.3 points lower than when it last made predictions in April.
"But we have reduced our forecasts for both 2017 and 2018 to 2.1 percent because near-term USA fiscal policy looks less likely to be expansionary than we believed in April", wrote Maurice Obstfeld, the IMF's chief economist, in an accompanying blog. If that is right, then for the United Kingdom to grow at the pace projected by the International Monetary Fund in 2017, it will have to see a sharp pick-up in the last half of this year.
International Monetary Fund raised its forecast for Japan to 1.3% growth this year, up 0.1 point from April.
"Market expectations of fiscal stimulus have also receded", it said.
Global growth for 2016 is now estimated at 3.2 per cent, slightly stronger than that of April 2017.Читайте также: Quiet on the Temple Mount on 'Day of Rage'
The upbeat projection for China, especially for 2018, reflects the expectation that the government will delay needed fiscal adjustments - or maintain high public spending - in a bid to meet its target of doubling the country's gross domestic product by 2020 from the 2010 level.
Obstfeld said the global economy has been the subject of considerable protectionist rhetoric, such as President Donald Trump's proposed tariff on steel imported from China, but such talk had yet to translate into much action.
According to the report, growth in South Africa will slow due to "political uncertainty and weak consumer and business confidence".
The IMF projected that regional growth will rebound to 3.3 percent in 2018, however.
The IMF's update came as a survey pointed to a modest slowdown in the eurozone in July as the region struggled to keep up the fast pace of its recent upturn.
Monetary policy normalization in some advanced economies, notably the USA, could trigger a faster-than-anticipated tightening in global financial conditions.
Obstfeld warned that rising inequality and weak wage growth, despite falling unemployment, "carries risks of exacerbating social tensions that have already pushed some electorates in the direction of more inward-looking economic policies".При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2017 Copyright.
Автоматизированное извлечение информации сайта запрещено.
Код для вставки в блог