Review of the World Economic Outlook

Abstract

The paper presents a critical review of the World Economic Outlook, the flagship report of the International Monetary Fund (IMF), launched in April 2018. After summarizing the global outlook depicted in chapter 1, we focus on the three analytical chapters that dig into the determinants of long-term economic growth. Although the report recognizes the role of manufacturing in the dynamics of productivity, employment and income distribution stressed by the heterodox growth theory, it concludes that services can offer considerable scope for productivity gains, contributing to the convergence of income per worker across countries. In face of this diagnostic, the report argues that neither subsidize manufacturing nor step back on trade liberalization are the best policies responses to support equitable growth. Hence, once more, the IMF embraced the heterodox perspective only partially.