IMF says Pakistan has not approached fund for deal

IMF says Pakistan has not approached fund for deal

It was the first downgrade since July 2016. It predicted China's GDP growth at 6.6% in 2018-'19 and downgraded it to 6.2% for 2019-'20. "Risks to global growth skew to the downside in a context of elevated policy uncertainty".

In a new assessment issued at its meeting in Bali, Indonesia, the International Monetary Fund predicted that "everyone is going to suffer", as the US and China - the world's two biggest economies - spar over tariffs and other trade issues.

"There are clouds on the horizon", he said.

IMF's chief economist and director of research Maurice Obstfeld, told journalists that "what affects the three major economies affect the whole continent as majority of the countries relies on their trajectories".

The Briton Woode institution is also projecting growth of 1.9 and 0.8 percent for Nigeria and South Africa while it is predicting contraction of 0.1 percent for Angola.

The new forecasts were released on the Indonesian resort island of Bali where the International Monetary Fund and World Bank annual meetings are getting underway.

In China, corporate debt has risen to levels "well above global historical benchmarks", while the rapid pace of household debt is concerning, according to the fund. Britain's FTSE 100 dropped 0.4 per cent to 7,201.

The Nikkei closed down 1.32 per cent this morning at 23,469.39.

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The government is seeking to curb spending, while the central bank has raised interest rates to the highest in three years to help shore up confidence in the economy.

To offset the effects of Federal Reserve rate rises, United States trade tariffs and domestic economic pressure caused by tighter financial regulation aimed at reducing debt risks in China's financial system, the Chinese authorities have eased monetary policy and the implementation of proposed new financial regulations.

The exercise assumes that U.S. President Donald Trump imposes tariffs on the remaining $267 billion worth of Chinese goods imports not already under punitive tariffs and China retaliates in kind. -China tariff war's impact to be felt next year, the Fund cut its 2019 US growth forecast to 2.5 percent from 2.7 percent previously, while it cut China's 2019 growth forecast to 6.2 percent from 6.4 percent.

According to the WEO report, growth is on the mend for sub-Saharan Africa, with the region's average growth projected to rise to 3.1 per cent in 2018 (from 2.7 per cent in 2017) and 3.8 per cent in 2019.

"It was a combination of factors that basically affected emerging and frontier markets".

He called on countries to ensure inclusive growth, which he said was "more important than ever".

The IMF now expects next year's growth rate to come to 2.4 percent, against 1.8 percent in April.

The IMF as usual urged emerging economies to accelerate structural reform measures to strengthen their economic fundamentals in the long term. The acceleration relative to 2016-17 reflects a more supportive external environment, including stronger global growth, higher commodity prices, and improved capital market access, following efforts to improve fiscal balances in the aftermath of the commodity price slump.

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