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

Mae Love
October 11, 2018

"Any sharp reversal for emerging markets would pose a significant threat to advanced economies, as emerging market and developing economies make up about 40% of world GDP".

The IMF said a new data base in its semi-annual Fiscal Monitor report showed considerable net worth in 31 countries that account for 61 per cent of global economic output.

"While foreign investors play a critical role in financial deepening in emerging market economies, excessively high levels of participation may increase the sensitivity of emerging asset markets to external shocks", the report said.

Further moves towards a trade war could "significantly harm global growth".

"It was a combination of factors that basically affected emerging and frontier markets".

The final decision, however, was announced on Monday night when Finance Minister Asad Umar confirmed that the government was going to the International Monetary Fund to bail Pakistan out of its foreign currency crisis. Real GDP growth was recorded at 2.6 percent in 2010, 3.6 percent in 2011, 3.8 percent in 2012, 3.7 percent in 2013, 4.1 percent each in 2014 and 2015, 4.6 percent in 2016 and 5.4 percent in 2017.

"That said, risks could rise sharply, should pressures in emerging-market economies mount or if trade tensions escalate".

President Donald Trump has already pushed through laws repealing banking rules in America for smaller institutions, saying they were holding back bank lending to businesses.

The IMF has also warned that United Kingdom public finances are among the weakest in the world.

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THE Australian share market has plunged at the open, with every sector deep in the red following Wall Street's overnight tumble. USA stocks have plunged to their worst loss in eight months. "But this nothing to be overly concerned about", Alexander said.

So let me try flesh out what the IMF might think but dares not say because it is the political captive of Washington, Beijing, and the defenders of Europe's monetary union.

One could be the ending of "easy money".

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.

It talks of "dangerous undercurrents" in the global system.

The IMF said that trade policy tensions and the imposition of import tariffs were taking a toll on commerce while emerging markets struggle with tighter financial conditions and capital outflows.

The American economy has been performing strongly, encouraging global investors to move capital there and invest in the dollar.

International Monetary Fund capital markets director Tobias Adrian said potential shocks to the system could come in many forms, such as higher-than expected inflation that triggers a sharp jump in interest rates or a "disorderly" exit by Britain from the European Union.

A raising of United States interest rates has also helped send emerging market currencies into a tail spin, as countries that borrowed heavily in dollars race to pay back their debt.

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