Global growth forecast revised up; to hit 3.9pc, says International Monetary Fund

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The IMF retained its forecast for India's growth rate at 7.4% of its Gross Domestic Product in 2018 and 7.8% in 2019.

For the two-year forecast horizon, it said the upward revisions to the global outlook result mainly from advanced economies, where growth is now expected to exceed 2 percent in 2018 and 2019.

The IMF expects the USA growth to accelerate to 2.7 percent this year, from 2.3 percent in 2017, citing increased investment as businesses take advantage of lower corporate tax rates.

The changes from tax reform are expected to add to economic growth through 2020 so real GDP will be roughly 1.2 percent higher than it would be without tax reform.

It estimates the effect on U.S. growth of the tax cuts will be positive through 2020, accumulating to 1.2% through that year, with a range of uncertainty around its central scenario.

The IMF said that China, during the same period is expected to grow at 6.6 percent and 6.4 percent respectively.

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She asserted said " Global growth has been accelerating since 2016, and all signs point to a continuing strengthening of this growth".This is why she has charged global political leaders to guard against the risk of complacency in the management of their economies.

"As the year 2018 begins, the world economy is gathering speed". It came a day after Oxfam Australia released a report showing the level of wealth held by Australia's richest 1% grew to 23% in 2017, up from 22% the year before, with the top 1% owning more wealth than the bottom 70% of Australians combined. Purchasing managers' indices indicate firm manufacturing activity ahead, consistent with strong consumer confidence pointing to healthy final demand.

The revision reflects stronger than expected activity previous year, higher projected external demand, and the expected macroeconomic impact of the tax reform, in particular the reduction in corporate tax rates and the temporary allowance for full expensing of investment, it said.

"On the upside, the cyclical rebound could prove stronger in the near term as the pickup in activity and easier financial conditions reinforce each other".

At the same time, the International Monetary Fund said the cyclical upswing in global economic activity provides "an ideal opportunity" for countries to undertake structural reforms aimed at boosting productivity and building resilience against downside risks.

The survey will come as a booster for Prime Minister Narendra Modi who will court worldwide investors on Monday and Tuesday in a bid to get more investment into the country, especially in the manufacturing sector, which has remained sluggish and is crucial to job creation. In an environment of financial market optimism, ensuring financial resilience is imperative, the report said.