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But the International Monetary Fund, which released its predictions for the world economic system at its annual meeting in Bali, Indonesia, warned that China's economy could decelerate further if the trade conflict deepens.

Share markets in Asia plunged to a 19-month low yesterday after Wall Street's worst losses in eight months led to broader risk aversion, partly due to the heated global trade tensions, as well as rapidly rising USA dollar yields. Mechanisms of multilateral global policy cooperation are under strain, notably in trade, and need strengthening'.

As Wall Street suffered its worst one-day fall since February on Wednesday, Trump accused the Fed of moving too fast in raising interest rates when inflation is minimal and government data points to a strong economy.

Singapore Prime Minister Lee Hsien Loong said the group will redouble efforts to reach a "substantial conclusion" to a regional trade arrangement, the Regional Comprehensive Economic Partnership, by the end of the year.

It said trade tensions between the United States and China, which has led the countries to implement tarriffs against each other, had played a role in the tempered global expectations.

"Near-term risks to global financial stability have increased somewhat", the International Monetary Fund said.

Market participants "appear complacent" about the potential risks from a "sudden, sharp tightening of conditions" - like rising interest rates or declining access to capital.

The Fund cited a number of other near-term risks to financial stability including the possibility of a "no-deal" Brexit or renewed fiscal policy concerns in some highly indebted euro area countries.

"It's tempting to be a bit depressed about this perspective but I'm actually hopeful because there is a clear appetite to improve and expand trade", she said.

Widespread catastrophic damage in Florida — WHAT'S HAPPENING
Joe, Fla., on Garrison Avenue on Wednesday, Oct. 10, 2018, after Hurricane Michael made landfall in the Florida Panhandle. It developed into a hurricane on Monday, and by Tuesday, more than 180,000 people were under mandatory evacuation orders.

However, in a newspaper article, the country's former ambassador to the World Trade Organisation Manzoor Ahmad said China only accounted for 10 per cent or so of Pakistan's loan repayments.

"Trade deficits don't (necessarily) mean cheating by the other side".

The growth rate of United States for 2018 is 2.9 per cent and that of 2019 has been powered to 2.5 per cent.

"All the accusations against China are completely trumped up".

"As discussed in the April and October 2018 GFSRs, measures of equity valuations appear stretched in some markets, investors have moved into riskier asset classes in search of yield, and the share of firms with low investment-grade ratings in advanced economy bond indices has increased significantly", it explained.

Despite the Federal Reserve's interest rate increases, financial conditions "have eased further" in the U.S. as equity valuations have stayed lofty.

Countries that take such a broad approach to their finances may face lower borrowing costs and see higher revenues, making them more resilient in a downturn, the report said.

"There has been a lot of noise in the country (after decision to go to IMF) during the last 48 hours as if the sky is going to fall".

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