Pakistan Announces Intention to Approach IMF and ‘Friendly Countries’ For Bailout Package

Pakistan Announces Intention to Approach IMF and ‘Friendly Countries’ For Bailout Package

Pakistan Announces Intention to Approach IMF and ‘Friendly Countries’ For Bailout Package

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.

The projected economic growth of the sub-Sahara Africa from 3.1 percent this year to 3.8 percent in 2019 is not enough to create the needed jobs for the growing population of the region, the Fund added.

The rapid build-up in debt in China in recent years also is a concern, although Chinese authorities have taken steps to rein in debt growth, he said.

Lagarde described the world economy as strong, because the growth recorded is expected to remain steady at 3.7 per cent in 2018 and 2019.

This acceleration, the world body said, reflected a rebound from transitory shocks (the currency exchange initiative and implementation of the national Goods and Services Tax), with strengthening investment and robust private consumption.

The IMF expects the US economy to grow 2.9 percent this year, the fastest pace since 2005 and unchanged from the July forecast.

"Economic growth is not evenly distributed throughout the world", Lagarde noted at a press conference on the sidelines of the IMF-World Bank Annual Meeting here on Thursday.

"Our strong recommendation is to de-escalate those tensions and to work toward a global trade system that is stronger, fairer and is fit for objective and for the future".

Inflation forecasts were also revised upward to reflect the higher than anticipated print in August.

So, the country's debt is substantially less than the global debt as percentage of world GDP. "If you compare around the world with the best economies or emerging market economies, the level of debt in India is lower", the top International Monetary Fund official said.

It said reform priorities in India include reviving bank credit and enhancing the efficiency of credit provision by accelerating the clean-up of bank and corporate balance sheets and improving the governance of public sector banks.

He did not specify how much in emergency financing the government would seek, but he had earlier said the government would need at least $8 billion to meet external debt payments through the end of the year.

"These efforts should be supported by further reductions in subsidies and enhanced compliance with the Goods and Services Tax", the International Monetary Fund report said.

"Trade tensions have escalated, policy uncertainties have increased in a number of countries, and some emerging market economies are facing financial-market pressures", Tobias Adrian, financial counsellor and director of the monetary and capital markets department of the IMF, said.

"Notwithstanding the present demand momentum, we have downgraded our 2019 U.S. growth forecast owing to the recently enacted tariffs on a wide range of imports from China and China's retaliation".

Traditionally, Ghana's current account position has been relatively high above 7.0 per cent of GDP.

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