World economy: Looking up

It is on course for high growth, low inflation, lower taxation, increased income support for the needy. And declining inequality.

Written by Surjit S Bhalla | Updated: January 1, 2018 12:40 am

world economy, indian economy, indian economy in 2017, india gdp growth, GDP, IMF data on indian economy, India inflation, US economy

The IMF forecast is for AE inflation rates to stay “constant” at around 1.6 per cent in 2018, before inching towards 2 per cent in 2022. (Illustration: C R Sasikumar)

The world economy had a very successful year in 2017. Just how successful can be gleaned from the fact that GDP growth (IMF data) registered close to 3.7 per cent in 2017. Unemployment rates in the advanced economies (AE) are at multi-year, if not historical, lows. What is surprising is that (median) inflation rates in AEs, while up from near-zero levels in 2015 and 2016 (0.3 and 0.8 per cent respectively) could only register 1.6 per cent in 2017.

The IMF forecast is for AE inflation rates to stay “constant” at around 1.6 per cent in 2018, before inching towards 2 per cent in 2022.