IMF boosts growth forecasts for US over next 2 years

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  • FILE - In this Tuesday, Oct. 4, 2016, file photo, International Monetary Fund Economic Counsellor Maurice Obstfeld speaks at a news conference during the World Bank/IMF Annual Meetings, at IMF headquarters in Washington. The IMF announced Monday, Jan. 16, 2017, it is raising its forecast for the U.S. economy in 2017 and in 2018, reflecting an expected boost from the economic policies of President-elect Donald Trump. "The global economic landscape started to shift in the second half of 2016," Obstfeld said, helped by a rebound in manufacturing activity in many countries and the financial market rally that started with Trump's November election victory.
(AP Photo/Jose Luis Magana, File)

    FILE - In this Tuesday, Oct. 4, 2016, file photo, International Monetary Fund Economic Counsellor Maurice Obstfeld speaks at a news conference during the World Bank/IMF Annual Meetings, at IMF headquarters in Washington. The IMF announced Monday, Jan.... 16, 2017, it is raising its forecast for the U.S. economy in 2017 and in 2018, reflecting an expected boost from the economic policies of President-elect Donald Trump. "The global economic landscape started to shift in the second half of 2016," Obstfeld said, helped by a rebound in manufacturing activity in many countries and the financial market rally that started with Trump's November election victory. (AP Photo/Jose Luis Magana, File) (The Associated Press)

  • FILE - In this Monday, Dec. 19, 2016, file photo, International Monetary Fund Managing Director Christine Lagarde makes a statement at a news conference, in Washington. On Monday, Jan. 16, 2017, the IMF releases its latest forecast for the world economy. (AP Photo/Cliff Owen, File)

    FILE - In this Monday, Dec. 19, 2016, file photo, International Monetary Fund Managing Director Christine Lagarde makes a statement at a news conference, in Washington. On Monday, Jan. 16, 2017, the IMF releases its latest forecast for the world ... economy. (AP Photo/Cliff Owen, File) (The Associated Press)

The International Monetary Fund is raising its forecast for the U.S. economy this year and in 2018, reflecting an expected boost from the economic policies of President-elect Donald Trump.

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The IMF also increased 2017 growth projections for a number of other countries including China, Germany, Japan and Britain, but warned that the global economy faced a number of downside risks including rising protectionist trade pressures.

The 189-nation global lending agency's latest economic outlook, released Monday, took note of the significant impact Trump's election has already had in giving a boost to U.S. stock prices, interest rates and the dollar. The new outlook puts U.S. economic growth at 2.3 percent this year and 2.5 percent in 2018. That would be an improvement from lackluster U.S. growth around 1.6 percent in 2016.