The World Economic Outlook (WEO) raised its global growth projection for 2017 to 3.5 percent from a prior 3.4 forecast, the International Monetary Fund (IMF) said in a report on Tuesday.
"The economic upswing that we have expected for some time seems to be materializing: indeed, the World Economic Outlook (WEO) raises its projection for 2017 global growth to 3.5 percent, up from our recently forecast 3.4 percent," the report stated.
The 2018 forecast remained the same at 3.6 percent projected growth.
The IMF revised its projection upward in the United States, reflecting the likely fiscal policy easing, stronger currency and slight increase in confidence. Europe and Japan’s outlooks also improved due to a recovery in global manufacturing and trade.
In the medium-term, significant downside risks remain, including the threat of protectionism, which could lead to trade wars, the IMF said.
Growth forecasts for 2017 and 2018 were revised upward for Russia, where economic recovery is benefiting from higher oil prices, and China, reflecting stronger than anticipated policy support.
For developing economies and emerging markets, growth was revised downward as a result of weaker overall economic outlooks, weaker trade and oil production cuts, especially in Latin America and the Middle East.