IMF Outlook

Mon, 2017/07/24 - 12:19pm | Your editor
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The International Monetary Fund produced its 2nd half updated forecasts today. The US economy is now predicted to grow 1.7% rather than 2%. Household well-being has deteriorated the most in three years. The IMF also cut its forecast for Britain, now expected also to log in a 1.7% output rise, down from 2% predicted in its April forecast, the first downgrade since the EU referendum late year. After the vote in June 2016, the Fund had to raise its British forecasts to 1.1% for this year (in Oct.) to 1.5% (in Jan.) and 2% (in April).

 

The Fund's downgrade of the US outlook results from lower expectations for tax reform and infrastructure funding measures from the beleaguered Trump Administration. The IMF, which operates from K Street, in Washington, D.C., always has its forecasts vetted by the countries themselves which means that they tend to be better than the final outcome turns out to be.

 

My account is now mostly closed at Fidelity but it has not yet landed at Schwab, despite promises from the former. So today's blog is incomplete. But we have news from the US, Mexico, Britain, Israel, Germany, Panama, India, Sweden, Denmark, Japan, and Brazil.

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