Global GDP Expected to Grow by 3.6% in 2018 - European Commission

The European Commission expects the United States' GDP to grow by 2.2 percent this year, while the global economy is expected to grow by 3.6 percent next year, according to the report of the European Commission's Spring Forecast.

MOSCOW (Sputnik) — The global economy is expected to grow by 3.6 percent next year, the European Commission's Spring Forecast published Thursday states.

"Notwithstanding the pick-up in global GDP growth, the optimism which has reigned over markets since autumn last year, driven by factors such as the prospect of economic stimulus and tax cuts in the US, has been waning since early March," the forecast reads.

The European Commission expects the United States' GDP to grow by 2.2 percent this year, a 0.1-percent downward revision from its previous projection, according to report.

"Compared to the winter forecast, a 0.1 pps. downward revision in 2017 was offset by a commensurate upward revision in 2018, reflecting the assumed delay in implementation of the fiscal stimulus," the forecast reads.

It warned of downside risks facing the US economy if its new administration's trade and immigration policy shifts "towards a more protectionist stance, implying significant losses for the US and global economy."

"There is also a growing risk of a backlash in sentiment should fiscal stimulus or other pro-growth policies fail to materialise or be significantly delayed," the Spring Forecast added.