The pace of global economic growth is rising, according to a new report from the International Monetary Fund, with growth forecasts upped from 3.1 percent in 2016 to 3.5 percent this year.
Writing in the IMF’s new World Economic Outlook, Maurice Obstfeldt said “we could be at a turning point”, adding that the IMF sees buoyant financial markets and “a long awaited cyclical recovery in manufacturing and trade”.
The UK’s economy is likely to grow by 2 percent this year, according to the report, with stronger growth than any of the major developed economies apart from the US despite the threat of a Brexit-related slowdown.
This figure is only slightly below what the IMF predicted a year ago, ahead of the EU referendum.
However, the IMF report does indicate several possible threats facing the economy, including “pressures for inward looking policies in the advanced economies”.
Protectionist policies represent a large problem to economic growth, with Mr Obstfeldt saying: “Capitulating to those pressures would result in a self-inflicted wound, leading to higher prices for consumers and businesses, lower productivity, and therefore, lower overall real income for households.”