Inflation in PHL to ease — International Monetary Fund long-term outlook

Govt decides to ‘immediately’ approach IMF

Trump’s tariffs will harm growth in 2019, IMF predicts

Still, debt has continued to rise, and conditions will "likely remain challenging" as central banks in advanced economies raise interest rates, it said.

A bull run has taken USA equities to record highs this year.

While the IMF's outlook for the Chinese economy stayed at 6.6% this year, its forecast for next year of 6.2% represents the slowest growth rate the Asian country has seen since 1990.

The Breton Woods institution, which said this at the Annual General Meetings of the IMF/World Bank now going in Bali, Indonesia, also revised downwards growth prospects for Nigeria in 2018 from 2.1 per cent to 1.9 per cent.

During the meeting, financial assistance was requested from the International Monetary Fund to help address Pakistan's economic challenges, she said.

Reflecting such sentiments, growth in trade of goods and services across the world was revised down 0.6 point from the July forecast to 4.2 percent in 2018 and 0.5 point to 4.0 percent in 2019, according to the report.

The report recommended emerging economies take steps to insulate themselves from a further exodus of funds from investors.

Lagarde met with Finance Minister Asad Umar and State Bank of Pakistan Governor Tariq Bajwa, who are attending the fund's annual meeting in Bali.

Despite some cause for positivity however, the International Monetary Fund has also suggested Switzerland's economy may slow down next year.

Some energy-rich emerging market countries have fared better due to higher oil prices, with Saudi Arabia and Russian Federation receiving upgrades to growth forecasts. Nigeria's growth is projected to increase from 0.8 per cent in 2017 to 1.9 per cent in 2018 and 2.3 per cent in 2019 (0.4 percentage point higher than in the April 2018 WEO for 2019), buoyed by the impact of recovering oil production and prices.

"Where we are now is we've gotten some bad news. So, we will be listening very, very attentively when and if they come to us".

The IMF said its forecast for investment growth for FY19 is weaker than in April, despite higher capital spending in India, on account of contracting investment in economies under stress, such as Argentina and Turkey, which is also reflected in a downward revision for import growth. It cited USA tariffs on solar panels, washing machines, steel and aluminum, in addition to retaliation by trade partners, as potentially depressing factors.

The model also includes the effects of a reduction in business confidence that reduces investment and leads to a tightening of financial conditions.

The rupee has fallen by more than 20 percent in four devaluations since December.

The report was written before the United States, Canada and Mexico finalized an updated trade deal. The Trump administration has penalized almost half of all imports from China and has threatened more for the other half. It also assumes that Trump imposes a 25 percent tariff on imported cars and auto parts.

In September, the USA implemented another round of tariffs on $200 billion worth of Chinese goods, which were met with countermeasures out of Beijing on $60 billion worth of US goods.

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