Fortune — The International Monetary Fund raised its 2017 global growth forecast on Tuesday due to manufacturing and trade gains in Europe, Japan, and China, but warned that protectionist policies threaten to choke a broad-based recovery.
The IMF , whose spring meetings with the World Bank get underway in Washington this week, forecast that the global economy would grow 3.5% in 2017, up from its previous forecast of 3.4% in January.
In its latest World Economic Outlook, the Fund said that chronically weak advanced economies are expected to benefit from a cyclical recovery in global manufacturing and trade that started to gain momentum last summer.
“The economic upswing that we have expected for some time seems to be materializing,” IMF chief economist Maurice Obstfeld wrote in the report.
The IMF lifted Japan’s 2017 growth projection by 0.4 percentage point from January, to 1.2%, while the eurozone and China both saw a 0.1 percentage point growth forecast increase to 1.7% and 6.6%, respectively.
Meanwhile, the IMF held its 2017 U.S. growth forecast steady at 2.3%, which still represents a substantial jump from 1.6% growth in 2016, partly due to expectations that President Donald Trump will cut taxes and increase government spending.
The remainder of this article is available in its entirety at Fortune