2 key risks are endangering the global economy, IMF says

pulse

March 20, 2018 1:10 PM

BI PRIME: World economic growth is set to remain firm this year and next, but remains vulnerable to payback from two key factors.

World economic growth is set to remain firm this year and next, but remains vulnerable to payback from two key factors, according to a new International Monetary Fund report — Chinese private debt and a temporary US fiscal stimulus whose effects will fade.
"Some of the temporary fiscal support underpinning current growth will end," the IMF said in its G20 staff report.
"The positive momentum expected for 2018 and 2019 will eventually slow, implying a challenging medium-term outlook for many countries," the Fund predicted.

The world economy may get a temporary boost from a combination of US tax cuts and Chinese government spending to bolster state-owned enterprises, but payback is coming and longer-term growth prospects remain subdued, the International Monetary Fund said in a new report.

the broadest synchronized global growth upsurge since 2010."

pulse