IMF lifts growth prospects for the Netherlands in new report

IMF lifts growth prospects for the Netherlands in new report

In an analysis certain to be seized on by Labour as backing for its tax strategy, the IMF used its influential half-yearly fiscal monitor to attack the rationale for the reductions in tax for the highest earners in recent decades.

Corbyn and the shadow chancellor, John McDonnell, said the proposed changes were needed to arrest rising income inequality - a line of argument supported by the IMF study.

"We expect to see a further pick-up in non-oil growth in 2018 and beyond as investment momentum builds ahead of Expo 2020", said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

"Excessive inequality could erode social cohesion, lead to political polarization, and ultimately lower economic growth", the report said.

But the IMF said that India is expected to regain the fastest growing major economy tag next year, despite the agency cutting down India's projected growth rate next year to 7.4 per cent, from 7.7 per cent. The international agency projects India to grow at 7.4 per cent, with China projected to grow at 6.5 per cent in 2018.

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For the next year, IMF also estimates a 2.5% growth, from 2.2% before.

"Many tax reforms since the 1990s have involved an increase in the exemption threshold together with a lower top personal income tax rate, causing a shift in the tax burden from very low and very high incomes toward the middle", the report adds.

Those banks, named by the IMF in its biannual Global Financial Stability Report, are Citigroup, Barclays, Deutsche Bank, Société Générale, UniCredit Group, Standard Chartered, Sumitomo Mitsui Financial Group, Mizuho Financial Group, and Mitsubishi UFJ Financial Group are all expected to deliver subpar profits.

"Better public spending can help, for instance, by reallocating education or health spending from the rich to the poor while keeping total public education or health spending unchanged", they added.

The Trump administration feuded with the International Monetary Fund (IMF) on Wednesday after the global lender threw cold water on the Republican efforts to spur economic growth through tax cuts. Too much money was chasing too few assets offering a yield, the IMF said.

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