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International Monetary Fund yesterday revised up its forecast for world economic growth in 2018 and 2019 saying that sweeping US tax cuts were expected to boost investment in the world's largest economy and help its main trading partners.

In an update of its World Economic Outlook, the IMF however warned that US growth would likely start weakening after 2022 as temporary spending incentives brought about by the tax cuts start to expire.



The tax cuts would likely widen the US current account deficit, strengthen the US dollar and affect international investment flows, IMF chief economist Maurice Obstfeld said.

The US economy has been showing steady but underwhelming annual growth since the last recession in 2007-2009.
The IMF revised up its forecast for global growth to 3.9 percent for 2018 and 2019, a 0.2 percentage point change from its last update in October.

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