Published: Thu, April 20, 2017
Medicine | By Megan Pierce

Economic Outlook: IMF projects Luxembourg growth slowdown

The Bretton Woods institution also raised the global economic growth projection for 2017 to 3.5 per cent from the 3.4 per cent it had forecast in January.

On Tuesday, the International Monetary Fund raised its 2017 global growth forecast on manufacturing and trade gains in Europe, Japan and China, but warned that protectionist policies threaten to halt a broad-based recovery.

According to IMF, Romania will record the second highest economic increase in Europe this year, surpassed only by Iceland (5.7%).

"The lion's share of the 1.6 percentage point decline in growth between 2011 and 2016 is attributable to the drastic slowdown in Nigeria, an oil exporter that in 2016 accounted for more than 20 per cent of purchasing-power-parity GDP of low-income countries and about half of the GDP of commodity exporters in this country group", the report stated.

On global economy, International Monetary Fund also said that overall public debt in advanced economies should stabilise in the medium term, while fiscal deterioration in emerging economies appeared at an end. Overall, Europe will record an economic growth of 2 percent, and theemerging countries, which also includes Romania, will record a 3 percent GDP growth.

IMF's Year-on-Year projection for Nigeria for 2017 and 2018 remains unchanged at 0.8 per cent and 1.9 per cent respectively.

Revised data shows an uptick in global growth from 3,1% to 3,5% this year, together with an unimproved rate in 2018.

Growth rates in most other countries in the Cooperation Council of the Arab States of the Gulf are similarly projected to dip in 2017. The economic growth estimation increases from 3.8 percent to 4.2 percent. "Furthermore, including after the discussions with the Finance Ministry and the Prognosis Commission, I keep my opinion that the Romanian economy will register this year a 5.2 percent growth", Prime Minister Grindeanu wrote on Facebook on Tuesday.

The projection is still well under the government's respective official forecasts.

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