Trump tax cuts will bring short-term global growth surge, says IMF

Davos report says changes will encourage investment, but that shot in the arm will only be short-lived

The global economy will grow faster than expected this year and next as Donald Trump’s corporate tax cuts provide a short-term shot in the arm, despite fears over rising inequality and overheating financial markets, the International Monetary Fund has said.

Launching its latest World Economic Outlook (WEO) report at the annual Davos gathering of the global political and business elite in Switzerland this week, the IMF upgraded its growth forecast for the world economy by 0.2 percentage points to 3.9% for both 2018 and 2019.

1. Extreme weather events

Davos is a Swiss ski resort now more famous for hosting the annual four-day conference for the World Economic Forum. For participants it is a festival of networking. Getting an invitation is a sign you have made it – and the elaborate system of badges reveals your place in the Davos hierarchy.

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Was the EU to blame for the switch to PFI? | Letters

Maastricht treaty limits on public spending may have fuelled private finance, argues Ted Watson. Plus other readers’ views on the controversial funding mechanism

George Monbiot (Opinion, 17 January) asserts that the PFI bosses fleeced us all. Twenty years ago there were exceptions. Oxfordshire county council and many other councils recognised its deceptive creative accounting and avoided using PFI.

Central government does not distinguish between irresponsible borrowing for revenue and responsible borrowing for capital. Both are in the public spending borrowing requirement (PSBR) which central government wished to present as low (a high PSBR leads to austerity to reduce it), so it restricted local government’s borrowing and used PFI to disguise its own borrowing.

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IMF lifts global growth forecast to 3.9%, saying momentum is building

Extreme weather, such as droughts in Australia, pose significant risk to growth, IMF warns

The International Monetary Fund has lifted its forecasts for global growth, saying momentum is building in global economic activity and Donald Trump’s tax cuts in the US are likely to stimulate activity further.

It says the growth momentum is expected to carry into 2018 and 2019, and it has revised upwards its global growth forecasts by 0.2 percentage points for both years, from 3.7% to 3.9%.

Related: Top 1% of Australians own more wealth than bottom 70% combined

Related: Technology will widen pay gap and hit women hardest – Davos report

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ADP acquires workforce management software startup WorkMarket

 Payroll provider ADP said it is acquiring WorkMarket, a startup that specializes in workforce management software that operates across a wide range of employees and contractors, for an undisclosed sum. The software aims to create a kind of unified interface for managing an extended workforce that can include a variety of workers with different employment status, from contractors and… Read More