International Monetary Fund raises Israel growth forecast

09 October, 2018, 15:26 | Author: Myra Gill
  • PM Imran Khan chairing the Punjab cabinet meeting. — PTI

The decision to approach the International Monetary Fund was taken by Prime Minister Imran Khan who had in the past opposed such measures to support the economy.

The IMF said Monday that the global economy will grow 3.7 percent this year, the same as in 2017 but down from the 3.9 percent it was forecasting for 2018 in July. The rupee, a managed float, fell at least 4.6% against the dollar, according to people familiar with the matter. Umar told Bloomberg in August that the government may need more than $12 billion.

In the fund's latest Global Economic Outlook, it estimated that the South African economy would grow by 0.8% this year, down from its initial projection of 1.5% in April.

Maurice Obstfeld said the International Monetary Fund does not see a generalised pullback from emerging markets, nor contagion that will spill over to those emerging economies which have stronger economies and have thus far avoided major outflows, such as those in Asia and some oil exporting countries. The May federal budget forecast 3 per cent GDP in 2018-19 and the same the following financial year. Authorities have devalued the rupee multiple times since December.

This is the country's fifth currency devaluation since December a year ago. "The currency move is definitely a devaluation", said Shahid Habib, chief executive officer at Arif Habib Ltd.

The government is seeking to curb spending, while the central bank has raised interest rates to the highest in three years to help shore up confidence in the economy.

Several emerging markets had their forecasts cut, including Argentina, Brazil, Iran and Turkey, reflecting factors including tighter credit.

The government has deep problems to fix. Contributions of 200 words or more will be considered for publication.


Most of the "meager gains" from growth have gone to the well off, fueling support for protectionism and anti-establishment leaders, said Mr Obstfeld.

Mr Obstfeld said: "Governments have less fiscal and monetary ammunition than when the global financial crisis broke out ten years ago". "That is a very good sign going forward".

Analysts say Pakistan hopes to secure $8 billion in loans to avoid an economic meltdown. Critics see that as part of a debt diplomacy trap by Beijing and question whether Pakistan will be ever be able to make the repayments.

Washington, which recently suspended military aid to Pakistan over its alleged failure to crack down on the Taliban, has expressed concern about IMF funds being used to repay Chinese loans.

The IMF predicted United Kingdom growth to would be 1.4% in 2018, rising to 1.5% in 2019, while the eurozone 2018 growth forecast was cut to 2.0% from 2.2%.

Pakistani currency hit a 10-week low at Rs129.50 to the USA dollar in the open market on Monday as people invested heavily in the greenback in a bid to stave off losses in the event of further rupee weakness in inter-bank dealings.

This story has been published from a wire agency feed without modifications to the text. "We have looked at all our options".

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