IMF Raises Russia's GDP Growth Forecast to 1.8% in 2019

  • IMF Raises Russia's GDP Growth Forecast to 1.8% in 2019

IMF Raises Russia's GDP Growth Forecast to 1.8% in 2019

It predicted China's GDP growth at 6.6% in 2018-'19 and downgraded it to 6.2% for 2019-'20.

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

Citing the U.S. tariffs on China and Beijing's retaliatory measures, as well as U.S. President Donald Trump's plan to impose global automobile and parts tariffs, International Monetary Fund chief economist Maurice Obstfeld said he regards "further disruption in trade policies" as major near-term downside risks.

"There are clouds on the horizon", Obstfeld added.

"There's no rationale for International Monetary Fund tax dollars - and associated with that, American dollars that are part of the International Monetary Fund funding - for those to go to bail out Chinese bondholders or China itself", Pompeo told USA television station CNBC.

The IMF issues the report ahead of the Annual IMF and World Bank meetings where world leaders, finance ministers and nongovernmental organizations will gather this week in Bali, Indonesia.

That could result in higher-than-expected interest rates from the Federal Reserve and stock market uncertainty.

Still, the trade disputes sparked by President Donald Trump that have led to tit-for-tat exchanges of tariffs among major trading partners are affecting China, other Asian economies and more vulnerable countries like Argentina and Turkey, along with Brazil. "For an economy that has become addicted to foreign loans and bailouts, the future is very much like the past", said Uzair Younus, a South Asia director at Washington-based consultancy Albright Stonebridge Group LLC.

The IMF expects SA's economy to expand by 1.4% in 2019, down from its April projection of 1.7%.

The IMF's cut to its outlook was broad-based.

China's economy could also take a hit: The IMF revised its forecast for economic growth in 2019 down to 6.2 percent, slightly lower than previous estimates and down from 6.6 percent this year.

The fund cut its 2019 United States growth forecast from 2.7 per cent to 2.5 per cent, and the China growth forecast from 6.4 per cent to 6.2 per cent.

In September, the US 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 USA goods.

The IMF concluded a consultative visit last week with a warning that Pakistan needed to quickly secure "significant external financing" to stave off a crisis, though it did not suggest who could supply the money.

He admitted that the continent "will witness growth next year but the growing number of working class coupled with less jobs opportunities, huge public debts and poor infrastructure present a challenge in achieving the developmental goals of the United Nations". Core inflation, which excludes volatile items such as energy, will vary from country to country, it said.