International Monetary Fund predicts 7.3% growth rate for India in current fiscal year

Finance Minister Asad Umar speaks in a video message. — DawnNewsTV

Finance Minister Asad Umar speaks in a video message. — DawnNewsTV

The IMF estimated that the global economy will grow 3.7% in 2019, down from its July projection of 3.9%, the first time since July 2016 that the fund has downgraded its global growth forecast.

The IMF said higher trade barriers could disrupt global supply chains, slow the spread of technology and ultimately lower global productivity and welfare.

They show that a burst of strong growth, fueled partly by USA tax cuts and rising demand for imports, was starting to wane.

The downgrade reflects a confluence of factors, including the introduction of import tariffs between the USA and China, weaker performances by euro zone countries, Japan and Britain. "It's so tight. I think the Fed has gone insane", the United States president said. In April, the International Monetary Fund was forecasting 2.9 per cent for Australia next year. -China tariff war's impact to be felt next year, the fund cut its 2019 USA growth forecast to 2.5 percent from 2.7 percent, while it cut China's 2019 growth forecast to 6.2 percent from 6.4 percent.

International Monetary Fund Managing Director Christine Lagarde on Thursday warned countries of the perils of a trade or a currency war, saying they could be detrimental to global growth and hurt "innocent bystanders".

Germany, the economic powerhouse of Europe, could be particularly hard hit by a drop in manufacturing orders and trade volumes. The S&P 500 fell for the fourth straight day Tuesday while the Cboe Volatility Index, also known as the VIX or Wall Street's fear gauge, neared 16, exceeding this year's average. It had previously predicted jobless rates of 5.5% and 5.2% respectively.

The People's Bank of China announced on Sunday that it would add more liquidity to the economy by cutting the amount of cash that banks must hold as reserves at the central bank.

At least 5 killed in heavy rains in Spain’s Mallorca
Other victims were found in Arta and the coastal village of S'illot, where the creek that overflowed reaches the sea. The flooding also affected phone communications, destroyed two bridges and forced the closure of 11 roads.

Among emerging market and developing economies, the growth prospects of many energy exporters have been lifted by higher oil prices, but growth was revised down for Argentina, Brazil, Iran, and Turkey.

Prominent US academic Jeffrey Sachs was less diplomatic in his assessment of Trump's shepherding of American trade relationships, slamming the president's repeated claims that deficits with China and other nations meant Americans were being taken advantage of.

"We are all deeply concerned about this news and the potential impact on the business".

"We know that risky behaviour and unsustainable debt is a recipe for financial crises".

The IMF report warned that these efforts could undermine the de-risking agenda and "entail greater risks to financial stability over the medium term should they set back progress toward reducing financial vulnerabilities".

A U.S. Treasury official on Monday repeated that the Trump administration was concerned about the yuan's recent weakening as the department prepares a semi-annual report on currency manipulation due out next week. The government has already hiked gas tariff on average by 35 percent and more could follow.

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