London: Global economic growth is expected to pick up this year and in 2018, despite the political uncertainties created by Brexit and the election of maverick US President Donald Trump. And the International Monetary Fund has issued an encouraging growth forecast for the Australian economy, compared to the Treasury's most recent predictions issued in December.

The IMF predicts Australia's economy will grow by 3.1 per cent in 2017 and 3 per cent in 2018. This is better than the most recent forecast by the Australian Treasury and released by the Australian government in December last year, which predicted GDP would "pick up to 2¾ per cent in 2017-18 as the detraction from mining investment eases."

Maurice Obstfeld, chief economist at IMF, speaks at a world economic outlook news conference. Credit:Andrew Harrer

World growth is forecast to rise from 3.1 percent in 2016 to 3.5 percent in 2017 and 3.6 per cent in 2018 the International Monetary Fund said on Tuesday, as it published its twice-yearly health check of the global economy.

The IMF said it is possible short-term growth "could indeed surprise on the upside," if confidence and market sentiment driven by a recovery in commodity prices, buoyant financial markets and deregulation in the US.