International Monetary Fund cuts global growth forecasts

International Monetary Fund cuts global growth forecasts

Earlier on Monday, the International Monetary Fund observed that India is projected to grow at 7.5 per cent in 2019 and 7.7 per cent in 2020 and would be the fastest among the major growing economies of the world.

In a report released on Monday, the global body cut its 2019 global growth forecast to 3.5 percent from previous estimates of 3.7 percent.

'The global expansion is weakening and at a rate that is somewhat faster than expected, ' the Fund said.

The minister also expects lower exports to the United States.

If there is a disruptive exit, or there is continued uncertainty for many more months, 'both of those are going to weigh negatively on growth going forward, ' she said.

Advanced economies have been on a declining path in terms of growth and this is taking place more rapidly than previously thought, according to the report.

The IMF has lowered its growth forecasts from 3.7 per cent in 2018 to 3.5 per cent in 2019.

A survey by auditing and accounting giant PwC of almost 1,400 chief executives found that 29 percent believe global economic growth will decline over the next 12 months, the highest percentage since 2012. Average oil prices are projected at just below $60/ 2019 and 2020, down from $66/bbl. and $69/bbl. respectively in the October forecast.

Most analysts include in China's tally of U.S. Treasuries much of the amount that's held in the accounts of Belgium, given they say it is home to Chinese custodial accounts.

The World Economic Outlook cut the global GDP forecast for this year to 3.5 percent from the 3.7 percent projected in October.

'A range of triggers beyond escalating trade tensions could spark a further deterioration in risk sentiment with adverse growth implications, especially given the high levels of public and private debt.

It has since rebounded, with healthy 2.3 percent growth in 2018, mainly thanks to higher oil prices and output.

"Higher trade uncertainty will further dampen investment and disrupt global supply chains", Gopinath said.

The IMF left its prediction for USA growth this year unchanged at 2.5 per cent - though a continuation of the partial 31-day shutdown of the federal government poses a risk.

An "escalation of trade tensions. remains a key source of risk to the outlook", the International Monetary Fund warned, pointing to the sharp decline in global financial markets in the final weeks of 2018.

U.S. President Donald Trump said on Saturday there has been progress toward a trade deal with China, but denied that he was considering lifting tariffs.

"The main shared policy priority is for countries to resolve co-operatively and quickly their trade disagreements and the resulting policy uncertainty, rather than raising harmful barriers further and destabilising an already slowing global economy". Nvidia fell 4.2 percent to $150.40 and Texas Instruments lost 2.9 percent to $96.55.

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