"This is good news".
"China will both cut back the fiscal stimulus of the last couple of years and, in line with the stated intentions of its authorities, rein in credit growth to strengthen its overextended financial system", said IMF Economic Counselor and Research Department Director Maurice Obstfeld.
For next year and 2019, the Update revised global growth projections upward by 0.2 percent to 3.9 percent.
It says global economic output is estimated to have grown by 3.7% in 2017, which is 0.1 percentage points faster than projected in October, and 0.5 percentage points higher than projected in 2016. In contrast, China, which International Monetary Fund estimates suggested grew 6.8%, a ad faster than India, is estimated to slow down to 6.6% in 2018 and further to 6.4% next year.
The IMF revised up its projections for global economic growth for 2018 and 2019 on the back of an unexpected uptick in Asia and Europe as well as United States tax cuts that are set to propel growth in the country along with its trading partners.
According to Obstfeld, the primary sources of GDP acceleration so far have been in Europe and Asia, with improved performance also in the US, Canada and some large emerging markets, notably Brazil and Russian Federation, both of which shrank in 2016, and Turkey.
"Global economic activity continues to firm up".
"The next Labour government will provide the serious investment our country needs, underpinned by our Fiscal Credibility Rule, to build a high wage, high skill economy for the many not the few".
China, which is 2017 growth champion with a growth rate of 6.8 per cent, is expected to slow down to 6.6 per cent in this year and 6.4 per cent next year. At a press conference, International Monetary Fund chief Christine Lagarde urged global policymakers to "fix the roof" while the going was good, calling for a more inclusive development strategy as almost one-fifth of developing and emerging economies saw their per capita income decline in 2017.
The uptick in growth in 2017 was relatively broad-based, with around 120 economies, representing three quarters of world GDP expanding year-on-year last year, "the broadest synchronised global growth upsurge since 2010", the fund said. "This short-term growth boost will have positive, albeit short-lived, output spillovers for US trade partners, but will also likely widen the USA current account deficit, strengthen the dollar, and affect worldwide investment flows".
If global sentiment remains strong and inflation muted, then financial conditions could remain loose into the medium term, leading to a buildup of financial vulnerabilities in advanced and emerging market economies alike.