1. Commerce
November 23, 2017

These are the world’s top seven economies according to the IMF

By Scarlett Evans

The US economy is the largest in the world, according to the latest International Monetary Fund figures.

With GDP of just over $19.4trn, it makes up roughly a quarter of the global economy and is followed by China with a GDP of $11.9trn, around 15 percent of the world economy.

Both have GDPs vastly higher than the other countries on the list.

Third is Japan with $4.9trn, then Germany at $3.7trn, France with $2.57trn, followed by the UK at $2.56trn and finally India with $2.4trn.

This is the first year since 2013 that France has outranked the UK and the gap is anticipated to widen over the next two years, with India set to overtake both France and Britain in 2019.

On Wednesday the UK’s Office of Budget Responsibility cut the the country’s growth forecast for 2017 from the two percent predicted in March to 1.5 percent, with future predictions of expansion at 1.4 percent for 2018 and 1.3 percent in 2019 and 2020.

The OBR said in a statement that growth is expected to slow “as public spending cuts intensify and Brexit-related uncertainty continues to bear down on activity”.

The country’s chancellor Philip Hammond referenced this dip during his Wednesday’s budget speech, even though he was intending to prove the strength of Britain’s economy.

Global growth

On a global level however, there is a general rise of economic activity, with global growth anticipated to rise to 3.6 percent in 2017 and 3.7 percent in 2018 — an improvement from the 3.2 percent of 2016 that was the weakest ever since the global financial crisis.

Here are some other of IMF’s predictions:

  • The US economy is expected to grow 2.2 percent in 2017 and 2.3 percent in 2018
  • The euro area is projected to increase 2.1 percent in 2017, and fall slightly to 1.9 percent in 2018
  • China is predicted to grow 6.8 percent in 2017 before lowering to 6.5 percent in 2018
  • India is predicted to grow 6.7 percent in 2017 and 7.4 percent in 2018

However, according to IMF’s report:

The recovery is not complete: while the baseline outlook is strengthening, growth remains weak in many countries.

The report highlights the fact that advanced economic areas’ inflation rate is below target, and that commodity exporters (particularly of fuel) have been badly affected in their adjustment to decreased foreign earnings.

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