Published: Fri, October 12, 2018
Money | By Armando Alvarado

International Monetary Fund announces forecasts for economic growth in Azerbaijan

International Monetary Fund announces forecasts for economic growth in Azerbaijan

The IMF staff team stressed the need for a decisive policy action on further exchange flexibility and tightening of fiscal and monetary policies along with structural reforms and "further increase in gas and power tariffs" to address the hard economic situation Pakistan is facing, with high fiscal and current account deficits and low foreign exchange reserves.

In India, private debt in 2017 was 54.5 per cent of the GDP and the general government debt was 70.4 per cent of the GDP, a total debt of about 125 per cent of the GDP, according to the latest International Monetary Fund figures.

The US has accused China of "debt-trap diplomacy" by lending countries money to pay Chinese companies to build infrastructure that the recipients can't afford. The gradual hikes by the US Federal Reserve has magnified fissures in vulnerable emerging market economies affecting countries like Argentina and Turkey, already grappling with existing economic woes.

"Looking ahead, renewed impetus to reform labour and land markets, along with further improvements to the business climate, are also crucial", it said.

It added that across many economies, government and corporate debt is substantially higher than before the global financial crisis.

Trump has justified the higher US tariffs as a response to the trade imbalance between the two countries, and China has swiftly responded with higher levies on USA imports.

It noted that in South Africa, inflation had moderated to 4.8 per cent from 5.3 per cent in 2017, with the easing of drought conditions, "but is expected to edge back to 5.3 per cent in 2019 as temporary disinflationary effects subside".

US, Russia astronauts making emergency landing
NASA had issued a worrying tweet on Thursday morning saying: 'There's been an issue with the booster from today's launch. Search and rescue crews are on their way to the Soyuz capsule, and were likely to reach it by 11.30pm, NZ time.

"So, it's very stable".

"Growing concerns about resilience and policy credibility of emerging markets in the face of external headwinds could lead to further capital outflows and possibly rising global risk aversion, which could send shock waves across broader risky asset markets".

But there is room to be upbeat, the International Monetary Fund said, citing favourable projections for emerging economies in Asia and Europe. Fed Chair Jerome H. Powell recently said these are "extraordinary times" for the US economy. "This blurriness reflects the very large number of public units and corporations, the complex layers of government, and widespread subnational off-budget borrowing", he said.

The IMF expects that Russia's growth will reach 1.8 percent in 2019, according to the World Economic Outlook report released on Tuesday.

As China works to compile a full general government balance sheet, this picture will come into clearer focus, he added. The report said that aggregate growth in the emerging market and developing economy group stabilised in the first half of 2018.

She said this was necessary "because if services are not sufficiently covered, if digital transformation is not sufficiently covered in the current trade framework, then we are missing the point, and we are probably missing out on productivity gains that we could have".

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