LONDON: Prospects for the global economy are looking brighter, according to the International Monetary Fund (IMF).
It reckons the recent pick-up has been pretty broad-based, particularly in Europe and Asia.
Tax reforms in the United States are expected to stimulate economic activity, especially business investment.
But the IMF has substantially downgraded its forecast for South Africa for this year and next.
The new global forecast has growth of 3.9% this year and next. That represents an upgrade of 0.2% for each year. It also constitutes faster expansion than previous years (3.7% in 2017; 3.2% in 2016).
The improvement is widespread. The report says 120 economies accounting for three-quarters of global economic activity saw a pick-up last year. Both developed and emerging economies were affected.
That, the IMF says, is the broadest synchronised global growth upsurge since 2010.
Indicators from business surveys suggest manufacturing activity will remain strong.
Although the improved performance towards the end of last year was widespread, the report mentions Asia and Europe as having had “notable” positive surprises in growth.