IMF says Pakistan has not approached fund for deal

IMF says Pakistan has not approached fund for deal

IMF says Pakistan has not approached fund for deal

At the same time, they note that the growth is becoming less balanced and in some leading economies, it may already have peaked.

Further out, China's economy is expected to slow gradually to 5.6 per cent as the government shifts to "a more sustainable growth path" and addresses financial risks, the International Monetary Fund said.

Obstfeld's report even went so far as to say that Argentina's economic woes "reflect the recent disruptions of the financial market, high interest rates (set by the government at 74 percent), and rapid fiscal consolidation under the (IMF) standby agreement approved in June".

It said 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 cut its 2019 United States growth forecast to 2.5 percent from 2.7 percent previously, while it reduced China's 2019 growth forecast to 6.2 percent from 6.4 percent. "In this environment, economic growth will likely slow significantly, and inflation will rise", he said in a statement.

Maurice Obstfeld, the IMF's economic counsellor, said at a press conference in Bali, Indonesia, after the report was released, admitted the April forecast was "overoptimistic" and that growth was "less balanced than we hoped". So, the aggregate - over three per cent this year, close to four per cent next year - is despite the largest economies in the continent doing poorly.

Adding that in several key economies, growth is being supported by policies that seem unsustainable over the longer term.

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ANALYST'S TAKE: The IMF report "should in no way surprise" as the fund's managing director Christine Lagarde warned that trade disputes were weighing on global growth last week, said Chris Weston of Pepperstone Group Limited.

However, the International Monetary Fund has slashed its global growth forecast for this year and the next to 3.7 per cent owing to escalating trade disruptions between the United States and China.

Monday's announcement sparked a devaluation of the rupee with the currency trading at 134 for a dollar at the official rate, against 124 the day before.

"But there is no denying that the susceptibility to large global shocks has risen".

Mr. Obstfeld said the impacts of trade policy and uncertainty are becoming evident at the macroeconomic level, while anecdotal evidence accumulates on the resulting harm to companies.

He urged all countries to prepare their workforces for the ways that new technologies will change the nature of work.

IMF-WB meetings organizing committee Susiwijono, who is also secretary to the Coordinating Economic Minister, stressed that the government had anticipatory measures in place for managing natural disasters in coordination with relevant institutions like the Bali Police and the National Disaster Mitigation Agency (BNPB).

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