(Yicai Global) Oct. 11 -- The International Monetary Fund (IMF) raised its growth forecasts for China and the world for this year and next in its World Economic Outlook released yesterday.
The fund's latest World Economic Outlook forecasts global economic growth of 3.6 percent for 2017 and 3.7 percent for 2018, up 0.1 percentage points, respectively from its July projections, Xinhua News Agency reported.
The IMF raises its China growth forecast for this year and next to 6.8 percent and 6.5 percent, respectively, up 0.1 percentage points from its July estimates. It is the fourth time this year that the fund has upgraded its China forecast.
The upward revision to its 2017 China forecast is mainly based on the country's previous policy support and supply-side reforms, the fund said. For 2018, the upward revision mainly reflects an expectation that the Chinese authorities will maintain supportive policies (especially through higher public investment) to meet their goal of doubling real gross domestic product between 2010 and 2020.
The IMF also mentioned that risks of capital outflows have been mitigated in China.
Near-term risks to the global economy are broadly balanced, the report said. Consumer and business confidence remains strong, and financial conditions are remain moderate. All these factors are set to contribute to the global economic recovery.
The report projects faster growth at 75 percent of the world's economies, representing a growth acceleration in the global economy on the broadest scale in almost a decade.
The report expects the eurozone's economy to expand by 2.1 percent this year and 1.9 percent in 2018, with Japan growth forecast at 1.5 percent and 0.7 percent, respectively and the US at 2.2 percent and 2.3 percent, respectively.
The fund also predicts that emerging market and developing economies will grow by 4.6 percent this year, unchanged from its July forecast, and by 4.9 percent in 2018, up 0.1 percentage points from its July projection.
The IMF publishes its World Economic Outlook for the first half and second half of a year in the spring and fall every year, respectively, and releases their updates in the middle of the year and at the start of the following year, respectively.