KUALA LUMPUR: Global output is projected to grow by 3.5 per cent in 2017 and 3.6 per cent in 2018, the International Monetary Fund (IMF) revealed in its July World Economic Outlook (WEO) update today.
The IMF explained that the pickup in global growth is on track, following its previous WEO report released in April this year.
The forward-looking output growth projections come on the heels of 3.2 per cent growth it reported in 2016.
Beneath the surface of the positive numbers, the IMF said that growth among the 189 nations that make up the IMF has shifted, as some countries recorded growth and others experienced slowdown in growth or even declines in the last quarter of 2016 and first quarter of 2017.
"The cyclical recovery continues. Growth outturns in the first quarter of 2017 were higher than the April 2017 WEO forecasts in large emerging and developing economies such as Brazil, China, and Mexico, and in several advanced economies including Canada, France, Germany, Italy and Spain.
"High-frequency indicators for the second quarter provide signs of continued strengthening of global activity. Specifically, growth in global trade and industrial production remained well above 2015-16 rates despite retreating from the very strong pace registered in late 2016 and early 2017," the IMF wrote, explaining how the global economy is maintaining its momentum.
The US and UK have seen their growth forecasts revised downwards, while countries in the Euro area (France, Germany, Italy and Spain) as well as Canada, China and Japan have had their growth projections revised upwards.
"Emerging and developing economies are projected to see a sustained pickup in activity, with growth rising from 4.3 per cent in 2016 to 4.6 per cent in 2017 and 4.8 per cent in 2018.
"These forecasts reflect upward revisions, relative to April (2017 WEO update)," the IMF added.
Malaysia is parked under the emerging and developing economies category.