Ready to add to cart? The three-day Great Online Sale has begun, with discounts of up to 95 per cent at your fingertips this weekend
In an update of its World Economic Outlook, the IMF however warned that US growth would likely start weakening after 2022 as temporary spending incentives brought about by the tax cuts start to expire.
The tax cuts would likely widen the US current account deficit, strengthen the US dollar and affect international investment flows, IMF chief economist Maurice Obstfeld said.
US President Donald Trump signed Republicans' massive $1.5 trillion tax overhaul into law in December, cementing the biggest legislative victory of his first year. The tax package, the largest such overhaul since the 1980s, slashed the corporate rate from 35 per cent to 21 per cent and temporarily reduced the tax burden for most individuals as well.
The US economy has been showing steady but underwhelming annual growth since the last recession in 2007-2009.
The Fund revised up its forecast for global growth to 3.9 per cent for both 2018 and 2019, a 0.2 percentage point change from its last update in October.
It also said that economic activity in Europe and Asia was surprisingly stronger than expected last year, and global growth in 2017 was now estimated to have reached 3.7 per cent, 0.1 percentage point higher than the Fund projected in October.
"The US tax policy changes are expected to stimulate activity, with the short-term impact in the United States mostly driven by the investment response to the corporate income tax cuts," the IMF said in the update, which was released on the sidelines of the World Economic Forum in Davos, Switzerland.
"The effect on the US growth is estimated to be positive through 2020, culminating to 1.2 per cent through that year," it said, cautioning that after 2022 the tax cuts were expected to lower growth for a few years.
The IMF said the US economy was now expected to expand by 2.7 per cent in 2018, higher than the 2.3 per cent the Fund forecast in October. US growth was projected to slow to 2.5 per cent in 2019, it said. - Reuters
Ready to add to cart? The three-day Great Online Sale has begun, with discounts of up to 95 per cent at your fingertips this weekend
In Hiroshima, the city devastated by the first nuclear bomb, the biopic's Academy Awards success met a mixed reaction
The Bollywood actor hosted the inaugural Hope Gala in London attended by prominent global personalities
More than 50 people are coming in to get the shot every day, doctors say
The nol cards can be used not only for public transport but also to make essential purchases at participating retail outlets in the emirate
The Italian company stands as the first Italian real estate brokerage group operating in the UAE
'The Australian batter also thinks 'there's no one better in India to have behind the stumps'
Policybazaar.ae unveils heartfelt short film advocating the need for term insurance