The International Monetary Fund (IMF) has revised global growth forecasts for 2018 and 2019 upwards, saying the revision is partly down to the recently approved overhaul of the U.S. tax system under President Donald Trump.
Global growth forecasts for 2018 and 2019 have both been revised upward by 0.2 percentage points to 3.9 percent. "The revision reflects increased global growth momentum and the expected impact of the recently approved U.S. tax policy changes," the IMF said in its World Economic Outlook report, published Monday ahead of the World Economic Forum in Davos, Switzerland.
An overhaul of the U.S. tax system was approved in December 2017 and has been broadly viewed as a legislative victory for Trump in his first year in office.
The changes saw the corporate tax rate drop from 35 percent to 21 percent and are predicted to boost consumer spending and U.S. growth, although its critics believe it will add $1.5 trillion to the U.S. deficit and would increase the wealth gap between rich and poor.