The International Monetary Fund (IMF) recently revised its global growth forecasts for 2018 and 2019, citing an increase from 0.2 percentage points to 3.9 percent.
This recent revision reflects an increased global growth momentum and the expected impact of the recently approved U.S. tax policy changes, as reported by the IMF in its World Economic Outlook report, published just before the World Economic Forum took place in Davos, Switzerland in mid January 2018.
“We’re pretty sure we’re seeing very broad based growth in global economy.”
– Maurice Obstfeld, IMF Chief Economist
Drop in Corporate Tax Rates = Increased Consumer Spending
The recent predictions see the corporate tax rate decreasing from 35 percent to 21 percent and are predicted to boost consumer spending and U.S. growth. For business owners, the time is now to take advantage of this global economic growth. The worst thing would be to do nothing, leading to a missed opportunity.
Obstfeld, warned that while there will likely be a cyclical upswing in the global economy, it is still, in fact, cyclical. Therefore, the uptick may be temporary in nature. He went on to state:
“We think that policymakers should not sit back and rest on their laurels (and) think that we’re in a new normal where everything will be great. They have to look ahead and look at the broad range of policies that can make growth stronger, and more resilient” he said.
There is no time like the present to take advantage of this global economic growth!