International Monetary Fund upgrades outlook on Russian Federation as economy recovers

Dwayne Harmon
October 10, 2018

And the International Monetary Fund anxious that market participants "appear complacent" about the potential risks which could be produced by a "sudden, sharp tightening of conditions" - like rising interest rates or declining access to capital.

The warning comes as finance ministers and central bankers from the IMF's 189 member nations prepare to meet this week in Bali for the annual meetings of the fund and its sister institution, the World Bank.

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

He contended that China had "already retaliated" against his tariff increases.

Developing markets, including Turkey, Argentina and several Asian countries, are at risk of a sudden drop off in foreign investor confidence.

Maurice Obstfeld, IMF's chief economist and director of research said whatever affects the three major economies will affect the whole region as majority of the countries relies on their trajectories.

The financial market volatility will likely continue next year, because the US Federal Reserve, after raising the federal funds rate by 25 basis points in its September 26 meeting, nonetheless signaled another rate hike by the end of this year and maintained its projection for three rate hikes in 2019. However, it has considerably reduced its economic growth forecast for 2023 to 1.2 percent, from 1.9 percent in its previous report.

Given a weaker than expected performance in the first half of this year, the growth estimates for the eurozone were revised down 0.2 point to 2.0 percent in 2018.

Facebook wants to put cameras in users' homes
The devices understand voice commands as well, allowing users to say "Hey Portal " before asking it to call one of their contacts. The screen can be locked behind a passcode, and you'll need to log into your own Facebook account if you want to change it.


Meteorite worth $100000 was used as doorstop for years
The Smithsonian Institution and a mineral museum in ME are now looking into purchasing the meteorite for display. Upon purchasing it, he noticed a large rock holding the door open, according to Central Michigan University .


Conor McGregor planning Dublin rematch with Khabib Nurmagomedov after UFC 229 chaos
White said Nurmagomedov should've "pulled [McGregor] up from the ground and said, 'Hey, good fight, ' and got his belt". He had the opportunity to walk out of that place a champion. "It should have been a very different night for him".


The Fund in its 2018 World Economic Outlook released yesterday also warned that the fragile growth of the region may not be enough for the attainment of the Sustainable Development Goals, if the trend remains for a while.

It also predicted that unemployment here will fall to 5.3% by the end of this year and 5.1% next year.

"But there is no denying that the susceptibility to large global shocks has risen", Obstfeld said.

Since the last GFSR in April, global economic conditions have become less balanced, with a more pronounced divergence between advanced and emerging economies. The 0.2 percentage point downgrade to the 2019 growth forecast is attributable to the negative effect of recent tariff actions, assumed to be partially offset by policy stimulus, it said.

After consulting with "leading economists", Pakistan will formally approach the International Monetary Fund for support and Finance Minister Asad Umar will hold talks with officials during the lender's annual meetings in Bali this week, the Finance Ministry said in a statement late Monday.

The London-based Capital Economics think-tank said last week that revenues of Saudi Arabia and the five other Gulf states are expected to rise by $200 billion this year compared to 2017 due to high oil prices and output.

Emerging Asia continued to register strong growth, supported by a domestic demand-led pickup in the Indian economy from a four-year-low pace of expansion in 2017, even as activity in China moderated in the second quarter in response to regulatory tightening of the property sector and non-bank financial intermediation, it said.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER