Economy Watch: IMF Predicts More Growth in 2018, Less Next Year
Advanced economies, including the U.S., will continue to expand above their potential growth rates this year, the International Monetary Fund's latest World Economic Outlook, which will likely support robust real estate markets in 2018.
By D.C. Stribling, Contributing Editor
The global economic growth that began around mid-2016 has become broader and stronger, according to the latest World Economic Outlook report published this month by the International Monetary Fund. The report projects that advanced economies as a group will continue to expand above their potential growth rates this year, a circumstance that tends to also support robust real estate markets.
On the other hand, for most countries, current favorable growth rates will not last. In more developed countries, such as the United States, growth is projected to decelerate in 2019, while growth in emerging markets and developing economies will rise before leveling off. That projected dynamic will very likely put a dint in real estate investment.
World growth strengthened in 2017 to 3.8 percent, the IMF said, with a notable rebound in global trade (which happens to be good for industrial property markets). Overall growth was driven by an investment recovery in advanced economies, continued strong growth in emerging Asia, a notable upswing in emerging Europe, and signs of recovery in several commodity exporters.
Global growth is expected to tick up to 3.9 percent this year and next, supported by strong momentum, favorable market sentiment, accommodative financial conditions, and the domestic and international repercussions of expansionary fiscal policy in the United States, the report said.
Video courtesy of the International Monetary Fund
