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Global Growth

Scott Akerman/flickr

The International Monetary Fund recently stated that the U.S. economy would expand faster than previously expected in both 2017 and 2018. The upward revision in the IMF’s forecast is based on the Trump Administration’s stated tax and spending plans. However, the IMF kept its global growth forecasts unchanged due to weakness in some key emerging markets.

As reported by Reuters, the IMF pegs overall global growth at 3.4 percent this year and 3.6 percent next.  That compares to the 3.1 percent performance last year, the weakest year for global economic growth since the financial crisis ended. According to the IMF, fiscal stimulus proposed by the new administration in Washington will push U.S. gross domestic product growth to 2.3 percent this year and 2.5 percent next.

The IMF has pointed out, however, that plans for expansionary fiscal measures could also trigger additional inflation in an economy that has already been approaching full employment. At the same time, the IMF reduced the forecast for Mexico’s growth significantly for both 2017 and 2018, citing a consumer spending pullback amid worries about the US President’s trade policies. 

Anirban Basu, Chariman Chief Executive Officer of Sage Policy Group (SPG), is one of the Mid-Atlantic region's leading economic consultants. Prior to founding SPG he was Chairman and CEO of Optimal Solutions Group, a company he co-founded and which continues to operate. Anirban has also served as Director of Applied Economics and Senior Economist for RESI, where he used his extensive knowledge of the Mid-Atlantic region to support numerous clients in their strategic decision-making processes. Clients have included the Maryland Department of Transportation, St. Paul Companies, Baltimore Symphony Orchestra Players Committee and the Martin O'Malley mayoral campaign.