7/20/2016
IMF Updated the Growth Estimates in the World Economic Outlook Report
IMF has cut the global growth expectation down to 3.1 percent for the current year from 3.2 percent due to uncertainties upon decision taken by Britain to exit from the European Union (Brexit), and to 3.4 percent from 3.5 percent for the next year
International Monetary Fund (IMF) has updated the Global Economic Expectations Report which was most recently published in April. It is stated in the report which was updated with the title “Uncertainties after the UK Referendum” that Brexit dazzled the global finance markets and has downward risks for the world economy in a considerable manner. It is stated in the report that Brexit has emphasized economic, political and corporate uncertainties, underlining that the decision taken by Britain will negatively affect investment, trust, financial conditions and market sensitivity in the macro economic sense. “Growth expectation for developed countries fell to 1.8 percent from 1.9 percent for 2016 and to 1.8 percent from 2 percent for 2017” The following are quoted in the IMF report where it is stated that growth expectations regarding the global economy and developed countries are revised in a downward manner due to uncertainties that occurred upon the Brexit poll: “We have revised our global growth expectations regarding the years 2016 and 2017 as 3.1 percent from 3.2 percent and as 3.4 percent from 3.5 percent respectively. Also, we have cut our growth expectations for developed countries down to 1.8 percent from 1.9 percent for 2016 and to 1.8 percent from 2 percent for 2017. The uncertainties highlighted by Brexit will considerably weaken Britain’s domestic demand. In line with the fact on hand, the sharpest downward revision has been made for Britain among developed countries regarding growth expectations. We have reduced the growth rate for Britain to 1.7 percent from 1.9 percent for the current year as a result of these developments and to 1.3 percent from 2.2 percent for the next year.” It is stated in the report where it is pointed out that the Euro zone displayed a growth rate over expectations in the first quarter of the year, that estimates for growth in 2016 has been elevated to 1.6 percent from 1.5 percent. On the other hand, it is stated that the growth estimate for the Euro zone has been reduced to 1.4 percent from 1.6 percent for the next year due to uncertainties in consumer behavior and business climate resulting from Brexit. According to the report including evaluations on developing countries, growth expectations regarding the countries in question remained at 4.1 percent and 4.6 percent respectively for 2016 and 2017. The next global economic outlook report of the IMF will be published in October.
Annual Report
