The IMF, whose spring meetings with the World Bank get underway in Washington this week, forecast that the global economy would grow 3.5 percent in 2017, up from its previous forecast of 3.4 percent in January.
In its latest World Economic Outlook, the Fund said that chronically weak advanced economies are expected to benefit from a cyclical recovery in global manufacturing and trade that started to gain momentum last summer.
“The economic upswing that we have expected for some time seems to be materializing,” IMF chief economist Maurice Obstfeld wrote in the report.
The IMF lifted Japan’s 2017 growth projection by 0.4 percentage point from January, to 1.2 percent, while the eurozone and China both saw a 0.1 percentage point growth forecast increase to 1.7 percent and 6.6 percent, respectively.
Meanwhile, the IMF held its 2017 U.S. growth forecast steady at 2.3 percent, which still represents a substantial jump from 1.6 percent growth in 2016, partly due to expectations that President Donald Trump will cut taxes and increase government spending.
The IMF also revised Britain’s growth forecast to 2.0 percent for 2017, up a half percentage point from January.
Obstfeld said an anticipated pullback in consumer spending after last year’s UK vote to leave the European Union had so far failed to materialize. He added that uncertainty over Britain’s snap elections announced on Tuesday would not necessarily change the outlook, but a clear mandate from the British people could help Brexit negotiations.
“There was already uncertainty on how the negotiation would go and what it’s final outlines would be. So, it may be that this is a tradeoff of a little more...