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International Monetary Fund revises forecast on Azerbaijan's economic growth

17 April 2018

But IMF chief economist Maurice Obstfeld said those effects will fade quickly, causing growth to slow in subsequent years.

The International Monetary Fund foresees strong, stable growth in the world economy for 2018-19 but is warning that a souring political climate for trade could weaken one of the engines of global prosperity for years to come.

That represents a slight downgrade from January's outlook of 2.3 per cent forecast for this year, and it's noticeably less than the strong three per cent growth Canada experienced in 2017. Romania's current account balance showed a deficit of 172 million euro ($212 million) in the first two months of 2018, compared to a surplus of 72 million euro in the same period of previous year.

Its goals are to ensure the stability of the worldwide monetary system (exchange rates and global payments), to secure financial stability, facilitate global trade, promote high employment and sustainable economic growth, and reduce poverty.

Obstfeld said there was more of a "phoney war" between the United States and China than a return to the widespread use of tariffs in the Great Depression, but that there were signs that even the threat of protectionism was already harming growth.

Nevertheless, total credit growth remains high, it said.

"Business confidence is likely to gradually firm up with the change in the political leadership, but growth prospects remain weighed down by structural bottlenecks", the global lender said in its latest World Economic Outlook published in Washington.

Meanwhile, the National Bank of Ukraine left its inflation growth forecast unchanged.

The WEO upgraded the USA, which is expected to expand by 2.9% in 2018 and 2.7% in 2019 - up from the 2.7% and 2.5% predicted in January.

In general, economy of the CIS member countries will grow 2.2 percent in 2018 and 2.1 percent in 2019, according to analysts of the fund.

The IMF made only modest changes to its forecasts for the UK.

According to the report, in Turkey, limiting balance sheet currency mismatches and the high exposure to foreign exchange risk are urgent priorities, especially with monetary policy normalization under way in the United States and the United Kingdom (and the resulting possibility of a shift of capital flows away from emerging market economies).

"Public skepticism about policymakers' ability to generate robust and inclusive growth has spread", Mr Obstfeld said.