IMF projects global growth of 3.4pc in 2017

By O’Brien Kimani

The International Monetary Fund projects global growth of 3.4 percent in 2017 and 3.6 percent in 2018.

The IMF says Sub Saharan Africa will expand by 2.8 percent before picking up in 2018 to grow at 3.7 percent.

The fund says in its latest data that advanced economies are now projected to grow by 1.9 percent this year and 2 percent in 2018.

The International Monetary Fund says global growth is expected to rebound driven by developed economies and improving demand in Asia coupled by a resurgent in commodity prices.

World economy is expected to register some of her best growth in decades this year at 3.4 percent before accelerating to 3.6 percent in 2018.

Sub-Saharan Africa which has been driving world growth is expected to register its weakest growth in years, with Kenya, Tanzania and Ivory Coast expected to register good growth rates.

The world’s second largest economy, China is seen slowing to 6.5 percent growth in 2017 and then 6.2 percent in 2018 with Asia’s expansion tipped to weaken slightly than the 5.8 percent seen in 2016.

Growth in Sub Saharan Africa is expected to be driven by continued investment in infrastructure and a rebound in commodity prices like oil and other minerals.

However, slow growth in the region would be as a result of a slowdown in inflows from major trading partners, and tightening borrowing conditions.

Domestically factors like political instability, conflicts, and poor weather is expected to depress growth.

Growth projections for 2017 have also been revised upward for Germany, Japan, Spain, and the United Kingdom, mostly on account of a stronger-than-expected performance during the later part of 2016, though Brexit risks still hovers around the world economy.



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