2018/19 Budget Communication 2018_2019 BUDGET COMMUNICATION | Page 60

In addition, the IMF is of the view that the
balance of risks to the economic outlook tends to the
downside over the medium term,. due to a number of
significant concerns. These range from a potential sharp
tightening of financial conditions as the advanced economies
approach potential output levels to growing trade tensions
and the attendant threat of protectionist policies on the part
of the major global trading countries.
Prospects for the U.S. economy through 2019
have clearly been buoyed by the expansionary tax reform
measures of December 2017. Particularly significant are the
lower corporate income tax rates as well as the temporary
allowance of full expensing of investment. Also