WASHINGTON (dpa-AFX) - The U.S is expected to grow 2.7 percent in 2018 reflecting President Trump's tax policy changes tax that will boost growth, the International Monetary Fund said in a new report Monday.
The IMF had originally forecast just 2.3 percent growth for America, however, raised its outlook after the tax reform.
Next year, growth is seen edging up to 2.5 percent versus 1.9 percent predicted in October.
The revision reflects stronger than expected activity last year, higher projected external demand, and the expected macroeconomic impact of the tax reform, in particular the reduction in corporate tax rates and the temporary allowance for full expensing of investment.
The significant reduction in the corporation tax rate from 35 percent to 21 percent would boost business investment and growth, the IMF said.
'We certainly should feel encouraged by the strengthened growth, but we should not feel satisfied. There are still too many people who are left out of that recovery and acceleration,' said Christine Lagarde, head of the IMF on Monday.
Meanwhile, global output is forecast to grow by 3.9 percent for both this year and the next, up from October projections of 3.7 percent, the IMF said in its World Economic Outlook Update.
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