IMF: The World Economy Starts Show Growth
**New York -The world economy is beginning to seem to gain momentum. This was revealed by the chief economist of the International Monetary Fund (IMF). Quoting the BBC on Wednesday (19/4/2017), IMF chief economist Maurice Obstelfeldt revealed, the world economy could reach a turning point.**
**The IMF projected global economic growth this year to reach 3.5 percent, up from 3.18 percent as projected by 2016.**
Nevertheless, the IMF also warned of risks that could weaken the projected global economic growth. These risks include the possibility of protectionism and trade war.
However, in general the tone indicated by the IMF is predominantly a more optimistic projection than before.
Long enough after the global financial crisis of 2008, the IMF feared the global economic recovery tended to slow to regain momentum.
This time too, the IMF sees prospects for better financial markets and cyclical improvements in the manufacturing and trading sectors.
The improvement in commodity prices also helps dim the fears of deflation or falling prices.
The reason is that these two things are considered a dangerous condition, especially in developing countries. In some cases, deflation may trigger economic downturn.
The IMF identifies several possible risks that could weaken its projections. The risk is particularly related to the pressure of inclusive policies in developed countries, such as protectionism.
**"Existing pressures can cause injury, encourage price increases at the consumer and business level, lower productivity, and real household income," Obstelfedt explained.**
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