International Monetary Fund expects single-digit inflation in Azerbaijan in 2018

Unresolved trade issues is one of the reasons Canada's GDP growth is expected to slow down. Image The Canadian Press  file

Unresolved trade issues is one of the reasons Canada's GDP growth is expected to slow down. Image The Canadian Press file

The International Monetary Fund has revised its economic growth forecast for the Czech Republic in 2018 from a projected 2.6 percent in the fall of past year to 3.5 percent of the GDP.

"Global growth is expected to tick up to 3.9 per cent this year and next, supported by strong momentum, favourable market sentiment, accommodative financial conditions, and the domestic and worldwide repercussions of expansionary fiscal policy in the United States", the worldwide Monetary Fund said.

That represents a slight downgrade from January's outlook of 2.3 per cent forecast for this year.

Asked if a trade war was under way, Obstfeld said the United States and China had fired "some warning shots" on tariff plans but had not activated them.

The IMF economist said action to reduce imbalances between economies should be tackled in multilateral actions, adding that surplus and deficit countries should co-ordinate actions to bring their spending programmes more closely into line with their income levels.

Political uncertainty increases the risks of implementing reforms in Brazil, Colombia, Italy and Mexico, the International Monetary Fund said. "The UAE should certainly prepare against risks, however - for example, Dubai's tourism and construction industry is strongly dependent on geopolitical stability, and regional, European and global visitors, meaning it will be exposed to any escalation in diplomatic disputes within the GCC or the knock-on effects of Brexit", he said.

International Monetary Fund research director Maurice Obstfeld said Tuesday fading trade could hurt growth and, "The first shots in a potential trade war have now been fired".

The comments represent the latest intervention from a community of multilateral institutions which have become deeply anxious about the prospects of a trade war in the coming years.

But in the short term, analysts agree the poised for a good economic year.

Globally, the experts warned that President Donald Trump's trade wars, restrictions and counter restrictions from China and elsewhere may derail the global economic growth.

He also pointed to the trade tensions that already exist, with skirmishes over steel tariffs and the U.S.

Overall global growth is forecast at 3.9% this year and next year. Both forecasts were unchanged from three months ago and were made the same day that data showed the economy grew 6.8 percent in the first quarter.

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