Global growth has plateaued at 3.7 %: IMF

TIL Desk/Business/Washington/ Global growth has plateaued at 3.7 per cent, the International Monetary Fund (IMF) said Tuesday, with its chief economist warning the world that there are clouds on the horizon and growth has proven to be less balanced than hoped.

“Last April, the world economy’s broad-based momentum led us to project a 3.9 per cent growth rate for both this year and next. Considering developments since then, however, that number appears over-optimistic: rather than rising, growth has plateaued at 3.7 per cent,” IMF Chief Economist Maurice Obstfeld said as the world body released the World Economic Outlook, its annual flagship report.

Released during the annual IMF and World Bank meeting in Bali, Indonesia, the World Economic Outlook projects that global growth will remain steady over 2018-19 at last year’s rate of 3.7 per cent. This growth exceeds that achieved in any of the years between 2012 and 2016, he said.

“It occurs as many economies have reached or are nearing full employment and as earlier deflationary fears have dissipated. Thus, policymakers still have an excellent opportunity to build resilience and implement growth-enhancing reforms,” Obstfeld said.