Published: Wed, October 10, 2018
Money | By Armando Alvarado

Govt decides to approach International Monetary Fund in compulsion, explains Fawad

Govt decides to approach International Monetary Fund in compulsion, explains Fawad

Its chief economist said further trade barriers would hit households, businesses and the wider economy.

But China's involvement could also bring potential risks, he 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 will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!" he said.

Adjustments would occur as domestic production displaces higher-priced imports, the model shows, but in the long run, the U.S. GDP would still be 1.0 percent below a baseline without these tariffs, while China's GDP output would be one half percent below the baseline.

"The global economic recovery has been uneven and inequality has risen, fuelling inward-looking policies and contributing to increased policy uncertainty".

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

However, in a newspaper article, the country's former ambassador to the World Trade Organisation Manzoor Ahmad said China only accounted for 10 per cent or so of Pakistan's loan repayments.

On Monday, Pakistan's finance minister said the country would seek an International Monetary Fund bailout to stabilise its teetering economy and replenish its dwindling foreign exchange reserves.

Jameel Ahmad, global head of Currency Strategy & Market Research at FXTM, said by all accounts, situation for rupee could get much worse before it gets better. -China tariff war's impact to be felt next year, the Fund cut its 2019 US growth forecast to 2.5 percent from 2.7 percent previously, while it cut China's 2019 growth forecast to 6.2 percent from 6.4 percent.

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I hadn't just been raped, I was taken to my own house and had been brutalised", she said, "I couldn't get up for (sic) my bed. After the incident, Nanda said that she narrated her ordeal to her friends but they asked her to keep quiet and move on.

Maurice Obstfeld, the IMF Economic Counsellor, warned against the rising tide of protectionism, saying that without multilateralism "the world will be a poorer and more risky place".

"The downward revisions reflect to an important extent the worsening of growth prospects for Iran, following the re-imposition of USA sanctions", it said.

The IMF also predicted that Bangladesh's consumer prices would reach 5.8 percent at the end of this year and 6.1 percent next year.

What about the United Kingdom and Brexit?

It now expects the global economy to only expand by 3.7% in 2018 and 2019, down from 3.9% before.

It believes Brexit will fundamentally change parts of the United Kingdom economy, leaving some workers out of a job.

It's not just the world's two most powerful economies that stand to be affected by trade policy.

The three leading economies of the continent, Nigeria, South Africa and Angola were projected "to witness sluggish growth in 2019 and beyond".

However, Chancellor Philip Hammond is still expected to borrow around £16bn in 2023 to plug the gap between tax revenues and public spending.

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