IMF Raises Russia's GDP Growth Forecast to 1.8% in 2019

Concerns over macroeconomic situation of the country keep investors jittery

Concerns over macroeconomic situation of the country keep investors jittery

"Nigeria's growth, 1.9 percent this year; 2.3 next year".

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 normalise, hurting emerging markets further at a time when US-led demand growth will start to slow as some tax cuts expire.

"The forecast does not incorporate the impact of further tariffs on Chinese and other imports threatened by the United States, but not yet implemented, due to uncertainty about their exact magnitude, timing, and potential retaliatory response", the International Monetary Fund said.

Finance ministers and central bankers from numerous IMF's 189 member nations are meeting in Bali this week with talk of rising protectionism taking centre stage.

According to experts, such inclination in the U.S. dollar rate against Pakistani rupee is an impact of government's decision to approach the International Monetary Fund (IMF) in order to handle the financial crisis that Pakistan is facing.

And it stressed "cooperative solutions" to help boost continued growth in trade "remain essential to preserve and extend the global expansion".

"The challenge for the current government is to ensure that fundamental economic structural reforms are carried out to ensure the that this spiral of being in an International Monetary Fund program every few years is broken once and for all", the finance ministry said.

President Erdogan retaliated by slapping United States exports with heavy tariffs, with extra duties on products such as cars, alcohol and tobacco.

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The euro zone's 2018 growth forecast was cut to 2% from 2.2% previously, with Germany particularly hard hit by a drop in manufacturing orders and trade volumes.

The IMF expects the USA economy to grow 2.9 per cent this year, the fastest pace since 2005 and unchanged from the July forecast.

It also predicted that unemployment here will fall to 5.3% by the end of this year and 5.1% next year. China was the fastest growing economy in 2017 as it was ahead of India by 0.2 percentage points.

Several emerging markets had their forecasts cut, including Argentina, Brazil, Iran and Turkey, reflecting factors including tighter credit.

The worldwide organisation said that inflation is expected to pick up in India due to a narrowing output gap, and the effects of exchange rate depreciation and rising fuel prices.

The IMF is now predicting 3.7 per cent global growth in both 2018 and 2019, down from 3.9 per cent for both years.

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

"China and a number of Asian economies are also projected to experience somewhat weaker growth in 2019 in the aftermath of the recently announced trade measures", it said. "Inclusive fiscal policies, educational investments, and ensuring access to adequate health care can reduce inequality and are key priorities", he said.

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