The IMF also said that it expects Cyprus's current account deficit to shrink to 3.8 percent this year, compared to 5.3 percent last year and to 2.7 percent in 2018 percent.
The International Monetary Fund (IMF) has raised growth forecasts for all advanced economies aside from the United Kingdom, after weaker-than-expected economic performance resulted in a downgrade earlier this year amid Brexit uncertainty. The Chinese economy is predicted to grow by 6.8 percent in 2017 and by slightly less in 2018. With growth outcomes in the first half of 2017 generally stronger than expected, upward revisions to growth are broad based, including for the eurozone, Japan, China, emerging Europe, and Russian Federation.
In its South Asia Economic Focus (Fall 2017) released on Monday, the World Bank reduced India's GDP growth forecast to 7% for 2017-18 from 7.2% estimated earlier, blaming disruptions caused by demonetisation and the implementation of the GST, while maintaining at the same time that the economy would claw back to grow at 7.4% by 2019-20.
The IMF said for 2017, most of its upgrade owes to brighter prospects for the advanced economies, whereas for 2018's positive revision, emerging market and developing economies play a relatively bigger role.
On the plus side for India, the International Monetary Fund raised last year's growth rate by 0.3% to 7.1% from the 6.8% it had projected in April citing "strong government spending and data revisions".
India's growth rate in 2016 was 7.1 per cent, which saw an upward revision of 0.3 percentage points from its April report.More news: Snapchat's new Context Cards give users less reason to search
More news: Rocket fired from Gaza strikes southern Israel
More news: Pakistan vs Sri Lanka, 2nd Test, Day 3 at Dubai
The World Bank's growth projection made in June was 7.2 percent for this year and 7.5 percent next year. The IMF said it now expects China to post 6.8% growth in 2017 and 6.5% next year, up from previous projections of 6.7% and 6.4% respectively.
The program, updated annually, saw growth at 5.5 percent between 2018 and 2020.
Also yesterday, the Asean+3 Macroeconomic Research Office (AMRO) cut its 2017 growth forecast for the Philippines on account of a first half slowdown.
South Africa slipped into recession earlier this year as rising inflation and high unemployment hit consumer spending, but a rebound in agricultural output has since helped the economy to return to growth.
In its monetary policy review last week, the Reserve Bank of India kept its policy rates unchanged and marginally raised its inflation forecast for rest of the year.
"While most of the world is sharing in the current upswing, emerging market and low-income commodity exporters, especially energy exporters, continue to face challenges, as do several countries experiencing civil or political unrest, mostly in the Middle East, North and sub-Saharan Africa, and Latin America", said Obstfeld.