IMF: Outlook is bright for US and global economies this year

The International Monetary Fund has upgraded its economic outlook for the United States in 2018 and foresees a strong year for the global economy as well. But its chief economist warns that the prospect of an escalating trade conflict "threatens to undermine confidence and derail global growth prematurely."

The IMF predicts that the U.S. economy will grow 2.9 percent this year, up from the 2.7 percent it had forecast in January and up from the 2.3 percent growth the economy achieved last year. The U.S. economy will enjoy a boost through 2020 from tax cuts President Donald Trump signed into law in December, the IMF predicts.

The lending agency kept its forecast for worldwide growth this year at 3.9 percent, which would be its fastest pace since 2011.