Posted on 01/22/2018 6:54:01 AM PST by BenLurkin
It also said that economic activity in Europe and Asia was surprisingly stronger than expected last year, and global growth in 2017 was now estimated to have reached 3.7 percent, 0.1 percentage point higher than the Fund projected in October. “The U.S. tax policy changes are expected to stimulate activity, with the short-term impact in the United States mostly driven by the investment response to the corporate income tax cuts,” the IMF said in the update, which was released on the sidelines of the World Economic Forum in Davos, Switzerland.
“The effect on the U.S. growth is estimated to be positive through 2020, culminating to 1.2 percent through that year,” it said, cautioning that after 2022 the tax cuts were expected to lower growth for a few years.
The IMF said the U.S. economy was now expected to expand by 2.7 percent in 2018, higher than the 2.3 percent the Fund forecast in October. U.S. growth was projected to slow to 2.5 percent in 2019, it said.
(Excerpt) Read more at reuters.com ...
GDP for 2018 will easily top 3%.
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