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These upward revisions more than offset the downward revisions to the outlook for Italy and Korea.
The primary factor underlying the strengthening global outlook over 2017–18 is, however, the projected pickup in EMDEs’ growth.
A further pickup in growth to 4.8 percent is projected for 2018.
Policies The baseline forecast for the global economy points to a pickup in growth over the rest of the forecast horizon from its subdued pace this year, in the context of positive financial market sentiment, especially in advanced economies.
As discussed in the October WEO, this projection reflects to an important extent a gradual normalization of conditions in a number of large economies that are currently experiencing macroeconomic strains.
3/ Japan's historical national accounts figures reflect a comprehensive revision by the national authorities, released in December 2016.There has been a stronger-than-expected pickup in growth in advanced economies, due mostly to a reduced drag from inventories and some recovery in manufacturing output.In contrast, it is matched by an unexpected slowdown in some emerging market economies, mostly reflecting idiosyncratic factors.Historical growth revisions indicate that Japan’s growth rate in 2016 and in preceding years was stronger than previously estimated. The picture for emerging market and developing economies (EMDEs) remains much more diverse.The growth rate in China was a bit stronger than expected, supported by continued policy stimulus. Federal Reserve raised short-term interest rates in December, as expected, but in most other advanced economies the monetary policy stance has remained broadly unchanged. dollar has appreciated in real effective terms by over 6 percent since August.
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