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It added: "There is a wide dispersion of possible outcomes around the projections, given uncertainty surrounding the policy stance of the incoming US administration and its global ramifications." For 2018, the organisation's forecast for UK economic growth has now been downgraded, from 1.7% last October to 1.4% now. Trump policies In producing this forecast, the IMF's economists have made some assumptions about the policies Donald Trump's administration will pursue, and they expect tax cuts and spending to boost the US economy. The IMF now expects the US economy to grow by 2.3% this year, up from a previous estimate of 2.2%, while the forecast for 2018 has been raised to 2.5% from 2.1%. In a statement, IMF chief economist Maurice Obstfeld cited Donald Trump's proposed tax cut and spending plans as an upside for growth. However, he added there was "a wider than usual range of upside and downside risks to this forecast". Analysis: Andrew Walker, economics correspondent IMF forecasts (and everybody else's for that matter) always have to contend with uncertainty. But it is particularly pronounced this time. The reason: the political change coming later this week in Washington. Just what policies will the Trump administration pursue? That will be a lot clearer next time the IMF issues a forecast in April.
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