The IMF, in its World Economic Outlook, raised the global economic outlook for 2017 to 3.6% and to 3.7% for 2018. This was a slight upgrade from the previous estimates of 3.5% and 3.6% respectively. The IMF’s World Economic Outlook report is released twice a year.

In its report, the IMF said that the global economy had strengthened and was broad-based. However, the growth remains incomplete, the report cautioned as it cited low wage growth and challenges from commodity exporters.

IMF calls out the UK. Forecasts lowered

The IMF called out the UK calling it a “notable exception” to a globally improving economy. The IMF cut the long-term forecasts for the UK noting that the side-effects of Brexit were starting to show.

According to the institution, the IMF expects UK’s growth outlook to rise just 1.7%, down from 1.9% previously. The revised forecasts put the UK trailing Greece in the next five year period. On the contrary, the IMF forecast growth rate of 11.5% for Greece in the five year period with the UK estimated at 10.3%.

For the year 2017, the IMF lowered the growth forecasts for the UK to 1.7%, down from 2.0% previously.

IMF’s Chief Economists, Maurice Obstfeld said that the downgrades in the forecasts for the UK were as a consequence of Brexit. “We forecast in the pre-referendum period, as did others, that there would be long-run negative effects on the British economy.”

Recent economic data from the UK showed that GDP rose 0.3% in the second quarter, following a 0.2% increase in the first quarter. The third quarter estimates according to research from NIESR showed a 0.4% expansion during the period. However, leading economic indicators point to a possible slowdown. This is likely to put UK’s economic expansion around the same pace of 0.3% on average.

US growth forecasts trimmed

The IMF also lowered the forecasts for the United States noting that President Trump’s tax cut proposals might not happen. The IMF predicts that although the US economy will expand, it expects a 2.2% increase in 2017 and 2.3% in 2018. This was a slight downward revision from the previous report in April which showed a 2.3% and 2.5% increase respectively.