Trump tax cuts will bring short-term global growth surge, says IMF

Davos report says changes will encourage investment, but that shot in the arm will only be short-lived

The global economy will grow faster than expected this year and next as Donald Trump's corporate tax cuts provide a short-term shot in the arm, despite fears over rising inequality and overheating financial markets, the International Monetary Fund has said.

Launching its latest World Economic Outlook (WEO) report at the annual Davos gathering of the global political and business elite in Switzerland this week, the IMF upgraded its growth forecast for the world economy by 0.2 percentage points to 3.9% for both 2018 and 2019.

1. Extreme weather events

Davos is a Swiss ski resort now more famous for hosting the annual four-day conference for the World Economic Forum. For participants it is a festival of networking. Getting an invitation is a sign you have made it - and the elaborate system of badges reveals your place in the Davos hierarchy.