But it warned that the outlook is clouded by President-elect Donald Trump’s promises to slash U.S. taxes, impose tariffs on foreign goods, ease regulations on businesses and deport millions of immigrants working illegally in the United States.

Washington-based fund expects inflation to fall to 4.2% this year and 3.5% next year but euro zone growth will lag

The International Monetary Fund has warned that US economic policies under incoming president Donald Trump could hit the rest of the world and ultimately backfire on the US. The IMF says a threatened wave of tariffs could make trade tensions worse,