Amid trade tensions, International Monetary Fund marginally cuts India's growth rate

17 Juillet, 2018, 09:37 | Auteur: Auguste Feret
  • The headquarters of the International Monetary Fund in Washington. India’s economy was a key beneficiary of falling crude oil prices between 2013 and 2015 given that low oil prices incentivise consumption

The Fund also cut India's growth rate by a tenth of a point to 7.5 percent due to the negative effects of higher oil prices on domestic demand and faster than anticipated monetary policy tightening due to higher inflation.

As the organisation sounded the alarm amid an escalating trade war between the United States and China, it held firm with its projections for the world as a whole but warned that the "risks to the outlook are mounting".

India's growth rate is expected to rise as "drags from the currency exchange initiative and the introduction of the Goods and Services Tax fade", according to the report.

"The risk that current trade tensions escalate further with adverse effects on confidence, asset prices and investment is the greatest near-term risk to global growth", IMF Chief Economist Maury Obstfeld told a news conference, noting that US trade deficits are likely to grow due to high demand, possibly inflaming trade tensions further. While the U.S. faces greater risks from trade, the fund said that Trump's tax cuts would also mean the American economy would continue to grow in line with its previous estimates of around 2.4 per cent this year.

"We continue to project global growth rates of just about 3.9pc for both this year and next, but judge that the risk of worse outcomes has increased, even for the near term", it warned.

The IMF left its global economic growth forecasts unchanged at 3.9 percent for both 2018 and 2019 from its previous forecast issued in April.

Forecasts for the USA and China were both unchanged, with United States growth pegged at 2.9% in 2018 and 2.7% in 2019.

Click here for enlarge
Click here for enlarge

The rate of expansion appears to have peaked in some major economies and growth has become less synchronised.

The RBI had said there was a 12 per cent increase in the price of Indian crude oils basket, which was "sharper, earlier than expected and seems to be durable". "For the aggregate of emerging market economies, the upward and downward revisions largely offset each other", the report added.

US President Donald Trump has continued to threaten the European Union with tariffs on a number of goods which has sparked fierce retaliation from trading partners.

Beyond the immediate threat from weaker levels of worldwide trade, the IMF said that greater use of protectionist measures could hinder business investment, disrupt global supply chains, slow the spread of productivity-boosting technologies and raise the price of consumer goods.

"Our modeling suggests that if current trade policy threats are realised and business confidence falls as a result, global output could be about 0.5pc below current projections by 2020", the report warned.

"As the focus of global retaliation, the United States finds a relatively high share of its exports taxed in global markets in such a broader trade conflict, and it is therefore especially vulnerable", Obstfeld added. The terms of Brexit remained unsettled despite months of negotiation.

5 best goals scored at FIFA World Cup 2018
The two superstars were vying to get their hands on the biggest prize in football for the first time in Russian Federation . Golden Ball victor Luka Modric stunned Argentina with this great strike for Croatia in Match 23 of FIFA World Cup 2018.

Eight Endangered Black Rhinos Have Died in a Sanctuary
Conservationists in Africa have been working hard to protect the black rhino from poachers targeting the animal for its horn.

Amazon crashes just as Prime Day kicks off, back 40 minutes later
Last year's Prime Day saw the best price of the year on the fitness trackers and Deal News expects similar discounts this year. Amazon says this is their biggest Prime Day to date with 40 per cent more Spotlight deals in the United Kingdom than in 2017.

Conseillé:

  • Maine's Congressional Delegation Is Critical Of Trump's Summit Comments

    Maine's Congressional Delegation Is Critical Of Trump's Summit Comments

    The Republican rebuke from Capitol Hill came largely from those lawmakers who have been willing to openly criticize the president. Not only were Trump's comments imbecilic, he is wholly in the pocket of Putin. "It was wonderful and very, very disturbing".
    Paul Pogba Transfer Rumors

    Paul Pogba Transfer Rumors

    Pogba will have to answer to his taunts when the English Premier League season begins in August and United take their show on the road.
    Another hot, humid day with afternoon storms possible

    Another hot, humid day with afternoon storms possible

    The main impact from these storms will be very heavy, torrential downpours, potentially causing some localized flash flooding. Occasional showers will be possible through the first half of the day with pop-up thunderstorms arriving this afternoon.
  • Michelle Obama lets loose at Beyoncé and Jay-Z's Paris concert

    Back in 2014, both Sasha and Malia, along with their mom, were spotted by concertgoers attending a show in Chicago. Michelle Obama's incredible legs caught the attention of multiple fans at a recent Beyoncé and Jay-Z concert.
    Journalist bravely confronts Donald Trump and Vladimir Putin

    Journalist bravely confronts Donald Trump and Vladimir Putin

    At the news conference, Trump was invited by reporters to offer any criticism of Russian Federation but he repeatedly declined. The conversation - which Wallace said was contentious at times - was Putin's first interview with US media since June 2017.

    USA - Blame the United States for our broken relationship with Russian Federation

    Asked if he trusted US intelligence agencies which concluded that Russian Federation interfered in the 2016 election, Mr. Trump said, as he has countless times, that there was "no collusion" between his campaign and the Russians.
  • Décès de l'ancien gardien Ray Emery — Carnet noir

    Décès de l'ancien gardien Ray Emery — Carnet noir

    Il a aussi dit que les premiers intervenants n'ont pas pu localiser Emery tout de suite et qu'ils ont appelé l'unité de plongée. Connu pour son tempérament bouillant sur la glace, Emery a livré trois combats à d'autres gardiens pendant sa carrière.
    Blake Shelton admits to drinking 'a lot' after falling on stage

    Blake Shelton admits to drinking 'a lot' after falling on stage

    The "Voice" judge fell while performing the closing set at Oregon's Pendleton Whisky Music Festival on Saturday. Blake Shelton! Following the show, Shelton took to Twitter to crowdsource a video of his tumble.
    Benoît Costil :

    Benoît Costil : "J’aurais tellement voulu qu’Olivier Giroud marque"

    Que peut-on lui reprocher?" Un sacre incroyable pour lui comme pour toute son équipe, même si une ombre apparaît tout de même au tableau.
  • Face à face Poutine-Trump

    Face à face Poutine-Trump

    Ils étaient accompagnés seulement de deux interprètes, avant un déjeuner de travail élargi avec leur délégation respective. Naturellement au cours de cet entretien entre les deux dirigeants, les sujets qui fâchent ont été abordés.
    Anthony Joshua confirms heavyweight title defence against Alexander Povetkin

    Anthony Joshua confirms heavyweight title defence against Alexander Povetkin

    It is a mandatory defence of his WBA title, but his WBA Super, IBF, WBO and IBO Heavyweight World titles will all be on the line. He has serious pedigree and only a fool would underestimate what he brings to the table.

    Deschamps ne fera pas une Jacquet après le sacre — EdF

    Les joueurs ne peuvent pas se rendre compte de ce qu'ils ont réalisé. "Les Bleus chassent le blues", insiste-t-il. Le succès des Bleus est celui d'une éducation d'excellence, qu'il est donc possible de transmettre.


Populaire

Bryce Harper wins Home Run Derby in home park
The Nationals outfielder defeated the Braves first baseman 13-12 with more than 20 seconds left in regular time . Fans booed Freddie Freeman and went wild less than five minutes later when Bryce Harper came up to bat.

Netflix subscriber growth slows, panicking Wall Street
Far from it, revenue for the quarter checked in at $3.1 billion, a modest 10% increase from the same quarter a year-ago. A significant chunk of subscriber growth can be attributed to Netflix's original content efforts.

The $US150b man: Jeff Bezos becomes the richest man in modern history
But Bloomberg also reported on Monday that Jeff Bezos's net worth is up to $150 billion, based on today's rise in Amazon shares. Behind Bezos on the Bloomberg index is Gates, with a US$95.5 billion fortune followed by Warren Buffett with US$83 billion.

Azealia Banks Accuses ‘Wildin’ Out’ Of Colorist Jokes
Banks then hit back at Cannon in another Instagram story post, taking a jab at his lupus diagnosis. "@meikthescxmmer I cried. Cannon took to Instagram to respond, writing, "Don't you hate when you create your own storms but forget your umbrella???"

‘Aquaman’ Poster Revealed: Jason Momoa Dives In To The Crowded DC Pool
He compiled an article highlighting the 50 things you need to know about James Wan's Aquaman which you can read on Collider .com.

Royals release new photos to mark Prince Louis's christening
Even though it looks like a pleasant photo at first glance, people were quick to criticize the new Royal. Justin Welby, presided over Louis's christening, just as he did for George and Charlotte's christenings.

"Deschamps Elysées-Clémenceau", "On a 2 Étoiles", la RATP rebaptise ses stations
Une fermeture qui concerne " Argentine " (ligne 1), " George V " (ligne 1), " Tuileries " (ligne 1), " Franklin D. Au total, six stations ont changé de nom pour rendre hommage aux vainqueurs de la Coupe du monde.

Nike a déjà fabriqué 20.000 maillots 2 étoiles pour la France — EdF
Laquelle Nike est la grande gagnante du week-end, avec les deux nations finalistes (France et Croatie) sous contrat. "On fait record sur record ".

Showtime Decries "Misinformation" Spread By ‘Who Is America?’ Victim Sarah Palin
The image on the board showed the actor sitting in a wheelchair with a prosthetic leg while wearing a U.S. In Sunday's episode, during an interview with Senator Bernie Sanders , Baron Cohen in character as Dr.

Migrants: nouveau bras de fer entre Rome et Malte
Une dizaine de personnes, des femmes et des enfants, ont été transportées pour des raisons médicales sur Lampedusa puis dans d'autres villes siciliennes.