"Many commodity exporters will not be so lucky, however, despite some improvements in the outlook for commodity prices".
While President Trump's tax cuts are expected to boost U.S. and global growth in the short term, the report warned that those effects will soon wear off as well.
Growth in the world's largest economy will surge to 2.9 per cent in 2018 from 2.3 per cent in 2017, then slow to 2.7 per cent in 2019.
"Against that positive backdrop, the prospect of a similarly broad-based conflict over trade presents a jarring picture", he told reporters at a news conference here.
The International Monetary Fund has revised its economic growth forecast for the Czech Republic in 2018 from a projected 2.6 percent in the fall of previous year to 3.5 percent of the GDP. Not a chance. "Global growth is on an upswing, but favourable conditions will not last forever, and now is the moment to get ready for leaner times", Obstfeld writes.
Compared with forecasts issued in October 2017, the predictions for this year for the euro-area, Japan and the USA have all been raised by half a percentage point or slightly more.
Overall global growth is forecast at 3.9% this year and next year.
This will cause a drop in investment spending and slowing down the United States economy.
The IMF would like to see countries like Canada boost their potential growth rates. Mr. Trump's pulling out of the 11-country Comprehensive and Progressive Agreement for Trans-Pacific Partnership is unhealthy for the global economy, they said.
"The prospect of trade restrictions and counter-restrictions threatens to undermine confidence and derail global growth prematurely", Obstfeld said at a press conference Tuesday.
"If policymakers are complacent and do not tackle the challenge of strengthening long-term growth, political risks could intensify, possibly reversing some of the progress that economic reforms and integration have achieved to date".
Instead, the International Monetary Fund argues that the United States and others should respond to anxiety about globalization and technological advances by "strengthening growth, spreading its benefits more widely, (and) broadening economic opportunity through investments in people", Obstfeld said.
However, the bank said that if reforms are delayed, growth could drop below current levels in an uncertain macroeconomic environment as financing risks rapidly increase and GDP growth could slow to 2 percent. "Fights over trade distract from this vital agenda, rather than advancing it", Obstfeld said.
Trump is pushing China to reduce its massive US$375bn trade surplus with the United States by US$100bn and change its policies that he says force American companies to hand over their technology and intellectual property to Chinese companies.
New Zealand strike double gold in rugby sevens
Etene Nanai-Seturo opened the scoring for New Zealand after two minutes and Vilimoni Koroi's conversion gave them a 7-0 lead. The victor of that match will progress through to the semi-finals and the loser will be out of medal contention.
Ambedkar's birth anniversary celebration today
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Blizzard Warning issued for much of Siouxland
Nobles Cooperative Electric says the storm destroyed dozens of transmission line poles near Interstate 90 early Friday. For state road and travel conditions call the Kansas Department of Transportation at 511 from any phone.
In Peru, Pence defends Syria military strike
US President Donald Trump has threatened to kill NAFTA if it is not changed to secure better terms for USA workers and companies. Pence said he was "very hopeful" that Mexico, Canada and the USA were close to an agreement on the negotiated trade pact.
Toledo passengers react to report about Allegiant Airlines
Allegiant Air ranks seventh and flies only about 3.5 percent out of the total folks flying out of Pittsburgh International. Steven Allen, an Allegiant pilot, also issued a statement saying he is "deeply offended by the accusations" in the story.