International Monetary Fund lifts Romania 2017 GDP growth forecast to 4.2%

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World economic growth is set to improve to 3.5% this year from 3.1% in 2016, the Washington-based lender said in its latest World Economic Outlook report.

The current account balance is higher than for the average of the eurozone which will slightly decrease from 3.4% in 2016 to stabilise at 3.0% over the coming two years.

The multilateral body raised the global growth forecast by 0.1 percentage point for 2017 at 3.8 per cent, but has retained the prediction for the United States at 2.3 per cent.

That figure is up from the previous estimate of 3.4 percent as the bank cited "buoyant financial markets and a long-awaited cyclical recovery in manufacturing and trade under way".

The reports come as financial and economic officials from around the world gather in Washington for this week's meetings of the International Monetary Fund and the World Bank.

"Growth is projected to rise to 2.6 percent in 2017 and 3.5 percent in 2018, largely driven by specific factors in the largest economies, which faced challenging macroeconomic conditions in 2016", the outlook read.

The IMF also said that if the Federal Reserve decides to raise rates at a faster pace, there will be a sharp dollar appreciation, which could hurt emerging economies.

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According to Russia's official outlook, inflation is expected to reach 4.4% this year and 4% in 2018.

They show economic growth of 3.1 per cent in 2017 followed by 3 per cent in 2018.

"Moreover, while there is a chance growth will exceed expectations in the near term, significant downside risks continue to cloud the medium-term outlook, and indeed may have intensified since our last forecast", writes IMF's report.

The IMF estimated emerging markets and developing economies will grow by 4.5 percent in 2017 and 4.8 percent in 2018, the same forecast as that of January. The forecast for the unemployment rate remained unchanged.

It "masks the expected pickup in non-oil growth as the pace of fiscal adjustment to structurally lower oil revenues slows", the International Monetary Fund added, referring to measures to cut budget deficits.

The IMF expects inflation to hit 2 percent this year, from 1.3 percent last year. In addition to the oil output cuts due to the OPEC agreement, the low growth expected for 2017 comes from fiscal adjustment policies.