By Isaac Cohen*
The best news that came last week out of Davos, Switzerland, was the announcement by the International Monetary Fund that the world economy is going through “the broadest synchronized global growth upsurge since 2010.” http://www.imf.org/en/publications/weo/issues/2018/01/11/world-economic-outlook-update-january-2018
This means “some 120 economies,” accounting for three quarters of world production were expanding in 2017, contributing to world growth of 3.7 percent, faster than it was projected. Furthermore, the projections for 2018 and 2019 “have been revised upward” to a yearly 3.9 percent of global growth.
All advanced economies are expanding, with the United States expected to grow even more than this year’s 2. 3 percent, as a result of recently approved tax reductions. While the European Union, led by Germany, is expected to grow at around 2 percent and Japan at 1.4 percent.
Emerging market and developing economies will also expand in the next two years, with Asia expected to grow at 6.5 percent, accounting for more than half of world growth. China’s moderate slowdown is expected to continue, but projections for the next two years were also revised upward slightly, while India is projected to continue expanding vigorously.
Due to higher commodity prices, the major South American economies have pulled out of their respective recessions, with average regional growth for Latin America expected to reach 1.3 percent in 2017 and projected to accelerate to 1.9 and 2.6 percent in 2018 and 2019, respectively.
*International analyst and consultant, former Director ECLAC Washington Commentator on economic and financial issues for CNN en Español TV and radio, UNIVISION, TELEMUNDO and other media.
