Global economy on track for broad-based recovery, IMF chief economist says

Maury Obstfeld, the chief economist for the International Monetary Fund, said the fund would not lower its outlook from its last projection. (AFP)

DUBAI: The global economy is on track for a broad-based recovery and the International Monetary Fund is unlikely to change its outlook when it issues is next report.
鈥淲e see broad-based recovery. The importance is that it is really broad-based in a way that it hasn鈥檛 been in a decade,鈥� Maury Obstfeld, the chief economist for the IMF, said in an interview with CNBC.com.
While Obstfeld did not disclose the Fund鈥檚 projection would be, he said the 鈥渢he organization 鈥榗ertainly鈥� is not going to lower the number from its last projection.鈥�
The IMF, in its July World Economic Outlook, said that global output would grow by 3.5 percent in 2017 and 3.6 percent in 2018.
High-frequency indicators for the second quarter provided signs of continued strengthening of global activity particularly growth in global trade and industrial production, the fund said.
Despite the positive outlook, Obstfeld also cautioned about risks to global growth particularly longer-term ones.
鈥淥ne risk is just continuing tepid growth. What we鈥檙e seeing now is a cyclical upswing, but potential growth remains slow,鈥� Obstfeld said. 鈥淭hat brings with it political tensions which we鈥檝e seen spilling over into protectionist rhetoric, for example.鈥�