IMF says Pakistan has not approached fund for deal

Gladys Abbott
October 10, 2018

U.S. -CHINA TALKS: U.S. Secretary of State Mike Pompeo said that Washington had a "fundamental disagreement" and "great concerns" about Chinese actions, before a meeting with Chinese Foreign Minister Wang Yi and another senior official in Beijing on Monday.

Maurice Obstfeld, the IMF's chief economist, said at a media briefing about the fund's latest World Economic Outlook: "When you have the world's two largest economies at odds, that's a situation where everyone suffers". -China relations. The Trump administration has confronted China on its technology policies and territorial claims in the South China Sea, and the countries have raised tariffs on tens of billions of dollars of each other's goods.

What are the risks to global growth? It estimates global output could fall by more than 0.8 per cent in 2020 and remain 0.4 per cent below its trend line over the long term, in a scenario where US President Trump follows through on all his threats, including global duties on cars.

He stated, "Nigeria's growth, 1.9 per cent this year; 2.3 next year".

The IMF's cut to its outlook was broad-based.

The IMF has also projected the economy will grow at an average of 4,7 percent between next year and 2023.

While the IMF's outlook for the Chinese economy stayed at 6.6% this year, its forecast for next year of 6.2% represents the slowest growth rate the Asian country has seen since 1990.

The IMF said the balance of risks was now tilted to the downside, with a higher likelihood that financial conditions will tighten further as interest rates normalize, hurting emerging markets further at a time when USA -led demand growth will start to slow as some tax cuts expire. Nigeria's growth is projected to increase from 0.8 per cent in 2017 to 1.9 per cent in 2018 and 2.3 per cent in 2019 (0.4 percentage point higher than in the April 2018 WEO for 2019), buoyed by the impact of recovering oil production and prices.

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French growth would shrink by a similar degree, it said, while the USA itself would suffer a 0.4 point drop.

9 cut its global economic growth forecasts for 2018 and 2019, saying that trade policy tensions and the imposition of import tariffs were taking a toll on commerce while emerging markets struggle with tighter financial conditions and capital outflows.

It said global debt levels were higher than in 2008, meaning that if one big bank were to fail, the way Lehman Brothers did 10 years ago, the ensuing market panic could be more severe than before.

The IMF said it expects inflation to accelerate around the world this year, due largely to increasing commodity prices.

Experts believe the International Monetary Fund program will come up with harsh conditions that will largely impair the country's growth.

"The provision of 10 million jobs and millions of housing units might become the victims as it will become hard to pursue the projects under the tight noose of the International Monetary Fund scrutiny", said one independent economist and added that the International Monetary Fund would pursue one shoe fit for all policy under which the sacrosanct targets of budget deficit and current account deficits would be curtailed by comprising growth and hiking inflationary pressures.

Most of the "meagre gains" from growth have gone to the well-off, fuelling support for protectionism and anti-establishment leaders, said Mr Obstfeld.

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