International Monetary Fund upgrades outlook on Russian Federation as economy recovers

Brexit uncertainty weighing on Europe's economy, IMF says, while global growth downgraded

However, the International Monetary Fund cuts its global economic growth forecasts for 2018 and 2019, saying that trade policy tensions and the imposition of import tariffs were taking a toll on commerce while emerging markets struggle with tighter financial conditions and capital outflows.

However, some economists still believe that the country would be able to maintain the current growth rate.

It's so concerned about the potential for a bad deal it has downgraded global economic growth to 3.7% for both 2018 and 2019, in its latest World Economic Outlook.

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. The Nasdaq composite lost 0.7 percent to 7,735.95.

The trade confrontation weighs on China in particular, where growth is projected to slow to 6.6 percent this year and 6.2 percent in 2019, a downgrade of 0.2 points.

On Sunday Pakistan's Prime Minister Imran Khan hinted at approaching the IMF, saying: "We may approach the IMF for support to the country's financial problems", but he insisted on looking toward other countries: "We have requested three countries to deposit funds in the State Bank of Pakistan that would boost the country's foreign exchange reserves".

Further out, China's economic growth is expected to slow gradually to 5.6 per cent as the government shifts to "a more sustainable growth path" and addresses financial risks, the International Monetary Fund said. It is expected to grow 1.4 percent in 2019, down from a previous estimate of 1.7 percent, the Fund said in its latest World Economic Outlook report.

The IMF also warned the new government that growth would likely slow and inflation rise further if it does not act fast.

The IMF now expects next year's growth rate to come to 2.4 percent, against 1.8 percent in April.

"China and a number of Asian economies are also projected to experience somewhat weaker growth in 2019 in the aftermath of the recently announced trade measures", it said. The IMF called for reforms in labour and land markets in the country, as well as improving the business climate.

"Priority areas in Russian Federation include improving property rights and governance, enhancing the institutional infrastructure, reforming labor markets, and investing in innovation and infrastructure", the report added. In India, a high interest burden and risks from rising yields require continued focus on debt reduction to establish policy credibility and build buffers.

The IMF said that trade policy tensions and the imposition of import tariffs were taking a toll on commerce while emerging markets struggle with tighter financial conditions and capital outflows. The report said that aggregate growth in the emerging market and developing economy group stabilised in the first half of 2018.

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