Friday, 19 October, 2018

International Monetary Fund raises Israel growth forecast

Govt decides to ‘immediately’ approach IMF Pakistan to start talks with IMF as rupee continues to fall
Ginger Lawrence | 10 October, 2018, 15:52

But it predicts that USA growth will slow to 2.5 percent next year as the effect of recent tax cuts wears off and as President Donald Trump's trade war with China takes a toll.

The IMF said the Iranian economy was now expected to contract over the next two years "on account of reduced oil production, before returning to modest positive growth in 2020-23".

This would mark China's weakest growth since 1990 and the impact could be harsher - a decline of 1 percentage point or more - if a worst-case trade war scenario were to materialise. The Russell 2000 index of smaller-company stocks shed 0.2 percent to 1,629.51. Angola, contracting by 0.1 percent this year.

With much of the U.S.

IMF's forecast for Singapore's economic outlook remains steady at 2.9% for 2018, but has been revised downward by 0.2 percentage points to 2.5% for the following year.

"In Nigeria, inflation is projected to fall to 12.4 per cent in 2018 from 16.5 per cent in 2017, and to rise to 13.5 per cent in 2019".

The rupee eventually closed the day at 133.6431 against the dollar in the interbank market, declining by Rs 9.371 or 7.542 per cent, according to the State Bank of Pakistan (SBP).

The region's slower growth next year mirrors the global growth's similar softening over the medium term.

Asian markets are mixed after the International Monetary Fund downgraded its economic outlook, citing rising interest rates and mounting tensions over trade.

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The IMF said Monday that the global economy will grow 3.7 percent this year, the same as in 2017 but down from the 3.9 percent it was forecasting for 2018 in July. The authorities expect it to reach US$25 billion this year.

"Thus, policy makers still have an excellent opportunity to build resilience and implement growth-enhancing reforms".

"Considering developments since then, however, that number now appears overoptimistic".

Meanwhile, Dr Obstfeld is concerned that several economies have adopted policies that are "unsustainable over the longer term" to boost growth. "These concerns raise the urgency for policymakers to act".

The effects on the U.S. and China would be particularly severe, with 2019 GDP losses of more than 0.9% in the United States and 1.6% in China in 2019. 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. "And in Africa, South Africa", the director said.

For emerging and developing Asia specifically, the International Monetary Fund sees the region continuing to grow "at a strong pace" despite the lower 2019 forecast which was mostly driven by trade-related conflicts that will have a negative expected impact.

The IMF's projection is close to the World Bank's forecast of 7 percent for fiscal 2018-19, released on Oct 2.

The American economy has been performing strongly, encouraging global investors to move capital there and invest in the dollar. There is still no fundamental reforms of the economy. With politics taking the front seat, governance and economic growth will take a nap from now till after the election. -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.