International Monetary Fund cuts global growth forecasts

Finance Minister Asad Umar says decision is taken after consulting leading economists

While the global economy is still on track to match last year's pace, which was the strongest since 2011, the new outlook suggests fatigue is setting in and the overall performance masked divergence with mounting weakness in emerging markets from Brazil to Turkey.

It is the first time the fund has cut its forecast in more than two years. The IMF pointed out that a full-blown trade war between the world's largest and second largest economies will cause a significant dent to the economic recovery from the Great Recession of 2018.

But "there are clouds on the horizon", he said.

The US will also see its growth "decline" once its fiscal stimulus, delivered through wide-ranging tax cuts "goes into reverse" according to Mr Obstfeld.

Meanwhile, Nigeria and other African countries who are members of the G-24, are set to discuss debt relieve, disaster aid and crises prevention with senior staff from the International Monetary Fund (IMF) at the ongoing Annual meeting in Bali, Indonesia.

The United States has already imposed tariffs on $250 billion of Chinese imports, about half the annual total, and has threatened to slap levies on the full amount.

In the latest report, Taiwan's major trade partner South Korea is projected to grow 2.8% and 2.6% for 2018 and 2019, respectively, downward revisions by 0.2 and 0.3 percentage points from previous forecasts.

The IMF forecasts US GDP growth this year of 2.9 per cent, slowing to 2.5 per cent in 2019 - which is 0.2 points slower than the July estimate -and to 1.8 per cent in 2020.

China was the fastest growing economy in 2017 as it was ahead of India by 0.2 percentage points.

China is trying to move away from its long-time reliance on heavy industry and manufactured exports towards a growth model based more on domestic consumption by its increasingly wealthy populace.

It also said inflation in India is on the rise, estimated at 3.6 per cent in fiscal year 2017/18 and projected at 4.7 per cent in fiscal year 2018/19, compared with 4.5 per cent in fiscal year 2016/17, amid accelerating demand and rising fuel prices.

For the eurozone, slow growth means less reductions in high unemployment rates in several countries and difficulty keeping on top of high debt levels, while Japan needs growth to ward off unsafe deflation.

These include instances where some key economies have supported their growth with policies that seem unsustainable over the longer term.

In its report the International Monetary Fund said the tit-for-tat tariffs imposed by the USA and China, weaker performances by eurozone countries, Japan and Britain all conspired to increase pressure on the global economy, while "the possible failure of Brexit negotiations poses another risk".

Related News:

  • Jamal Khashoggi: Saudi Arabia lets Turkey search consulate

    Jamal Khashoggi: Saudi Arabia lets Turkey search consulate

    Considered an authoritative voice on Saudi affairs, Khashoggi has also been a regular contributor on worldwide news outlets. The Post said "a person close to the investigation" shared the image with them, without elaborating.
    After an undisclosed security breach was revealed, Google+ will be shutting down

    After an undisclosed security breach was revealed, Google+ will be shutting down

    When those friends signed into apps using Google +, app developers ask for permission to get profile information and are granted. Google said the issue was discovered and patched in March as part of a review of how Google shares data with other applications.
    The Latest Postseason Twist: Starting Pitchers That Double as Relievers

    The Latest Postseason Twist: Starting Pitchers That Double as Relievers

    If the Boston Red Sox are going to get one back in NY and eventually win this series, Price will need to get his redemption. The Yankees suffered no shortage of power when they took the field at Fenway Park for Game 2 of the ALDS.
  • Jay Ajayi is out for the season with a torn ACL

    Jay Ajayi is out for the season with a torn ACL

    Jay Ajayi's lasting memory from the 2018 season will be fumbling inside the five-yard line in a 23-21 loss to the Vikings. The former Boise State star is out for the season with a torn ACL , according to ESPN's Adam Schefter .
    Bellingcat investigators say second Skripal poisoning suspect identified

    Bellingcat investigators say second Skripal poisoning suspect identified

    Last week, the Justice Department filed criminal charges against seven members of the GRU, accusing them of hacking into the U.S. Bellingcat said it gathered its information from open sources and " testimony from people familiar with the person ".
    China Says US Actions Hurting Relationship

    China Says US Actions Hurting Relationship

    When Pope Francis visited South Korea in 2014, he held a special mass in Seoul dedicated to the reunification of the two Koreas. He said Chinese leader Xi Jinping was also expected to travel to North Korea but did not elaborate further.
  • Melania Trump Claims Donald Trump Cheating Rumors Are Just Gossip

    Melania Trump Claims Donald Trump Cheating Rumors Are Just Gossip

    Melania Trump was in the country to promote her Be Best initiative, which specifically addresses online bullying. I know", she adds, pointedly. "It's not always correct stuff", she added in the clip released Friday.
    Google to bring Pixel 3 smartphones to Singapore in November

    Google to bring Pixel 3 smartphones to Singapore in November

    David Ruddock, the managing editor of Android Police, recently tweeted and insisted Google has a Pixel Slate tablet in the works. Google declined to address that further Tuesday, though executives emphasized privacy and security throughout the event in NY .
    Google+ To Shut Down After Privacy Bug

    Google+ To Shut Down After Privacy Bug

    If an app wants access to a Calendar and Drive documents, for example, you can opt to share one but not the other. Google has also revealed details of Project Strobe, an audit program through which it discovered the problem.
  • Devastation in Florida, flooding elsewhere — WHAT'S HAPPENING

    Devastation in Florida, flooding elsewhere — WHAT'S HAPPENING

    The major storm will also make some locations in the Florida Panhandle and close-by areas uninhabitable for weeks or months. The hurricane damaged hospitals and nursing homes in Panama City, and officials worked to evacuate hundreds of patients.
    Haiti quake toll rises to 15 - gov't

    Haiti quake toll rises to 15 - gov't

    The agency said Port-de-Paix, Gros-Morne, the town of Chansolme and the island of Tortuga had suffered some of the worst damage. The tremor also damaged the facade of a church in the town of Plaisance and a house next door collapsed, the paper said.
    Chill in the air as Pompeo meets Chinese counterparts in Beijing

    Chill in the air as Pompeo meets Chinese counterparts in Beijing

    Departing from Seoul, . he arrived in Beijing on Monday afternoon. "Brilliantly selling the same horse twice". Moon also said there was a possibility of Kim holding a summit with Japanese prime minister Shinzo Abe.


Most liked

Turkey Claims Saudis Killed, Chopped Up Journalist — NY Times
On his first global trip as president, Trump visited Saudi Arabia and announced $110 billion in proposed arms sales. Mr Khashoggi was visiting the consulate to finalise his divorce so he could marry his fiancée, Hatice Cengiz.

This Is Brett Kavanaugh's First Question as a Supreme Court Justice
Steve King, R-Iowa, an immigration hard-liner who has often been criticized for statements about whites and minority groups. The bitterly divided Senate voted 50-48 on Saturday to confirm Kavanaugh, with just one Democrat supporting him.

DUP threatens 'serious action' over Brexit
The de-facto Deputy Prime Minister was pressed on the DUP's support when he appeared on ITV's Peston on Wednesday night. Negotiators in Brussels remain tight-lipped, but it sounds like a deal on the withdrawal agreement is close.

Ronaldinho endorses far-right Brazilian presidential candidate
The last indigenous person elected was Mario Juruna, who won a seat in 1982 from Rio de Janeiro to much fanfare. Bolsonaro's rightist critique of Brazilian society is far more scathing.

Paul Pogba reveals he never wanted to be a captain
As a leader you can talk on the pitch, but I have seen leaders who do not necessarily speak. "The armband has never been a goal". Yes, I think there are things that should not be done from the players' side and from the manager and above.

First Image of Ruby Rose as Batwoman Reveals a New Caped Crusader
The annual Arrow-verse crossover will begin production Tuesday in Vancouver, B.C., according to Entertainment Tonight. The Arrowverse three-way crossover begins Sunday, Dec. 8 at 8/7c on The CW . "I didn't change.

Fox hires ex-Trump aide Hope Hicks
This summer he named former Fox News co-president Bill Shine as assistant and deputy chief of staff for communications. She was considered one of Trump's most trusted advisers during a chaotic first year for the president.

Here's how Hurricane Michael could impact Maryland
As of the 4pm CDT advisory Monday evening, Michael was a category 1 hurricane with maximum sustained winds of 80 miles per hour . It's likely that Hurricane Michael will cause beach erosion for 75 percent of Florida's Gulf Coast Beaches, the USGS predicted.

SpaceX's Falcon 9 launch gave California residents another scare
Space-X successfully launched an Argentinian radar observation satellite from Vandenberg AFB this evening at 7:21 PDT. A SpaceX Falcon 9 rocket with the SAOCOM 1 communications satellite roars to orbit on Sunday, Oct. 7, 2018.

Former UFC Champion On Conor McGregor - Khabib Incident, McGregor Teammate Comments
While Khabib vs McGregor II would definitely do numbers, there are other fighters who are looking for a title shot as well. It was, however, the events after the main event which got everyone talking.

Susan Collins will vote to confirm Brett Kavanaugh to the Supreme Court
Republican Senator Susan Collins and Joe Manchin , a Democrat, both indicated their backing for the judge on Friday, BBC reported. In a second tweet, she cautioned that she was "not making any announcements" but was "deeply disappointed" in Collins' vote.

Hurricane Michael prompts Alabama to declare state of emergency
Tropical storm conditions are expected across the remainder of the warning areas in Cuba and the Yucatan Peninsula later today. Hess Corp, Royal Dutch Shell and Anadarko Petroleum Corp said they were monitoring the storm and would take actions as needed.

McConnell now open to Supreme Court nomination in presidential election year
Protesters against US Supreme Court nominee Brett Kavanaugh demonstrate at the high court in Washington ahead of his confirmation. The US Senate, controlled by the Republican Party, confirmed his appointment to the Supreme Court by 50 votes to 48.

Google Pixel Slate renders appear to reveal design, detachable keyboard and stylus
The Google Pixel 2 started at a price of around Rs 61,000 and the Pixel 3 is expected to be slightly higher than its predecessor. The report additionally noticed some Black areas on the back of the Pixel Slate and they could be for cellular connectivity.

Who is Brett Kavanaugh, US Supreme Court's new judge
On ABC's "This Week", Hirono was pressed on whether she might support potential future Democratic efforts to impeach Kavanaugh. Both parties contend that the new contours of the race will energise their supporters in the election's final stretch.