Pakistan's currency plunges as it seeks International Monetary Fund loan

Pakistan to seek IMF bailout to overcome financial crisis

The IMF had in its World Economic Outlook report in July projected that Nigeria's economy would grow by 2.1 per cent in 2018 and 2.3 per cent in 2019.

"But, first we will try to get assistance from other countries as we have requested three countries to deposit money in Pakistan's State Bank that would help boost national reserves", he said, without offering details or taking any name on the matter.

In its latest "World Economic Outlook", (WEO) the IMF's has predicted that the global economy will grow by 3.7% in 2018, down from the 3.9% it predicted in April 2018.

While tax cuts and increased spending have seen an immediate upswing in United States growth, the International Monetary Fund warned that the country could face an unwelcome "inflation surprise", which would prompt the Federal Reserve, America's central bank, to hike rates at a faster-than-expected pace.

World Bank President Jim Yong Kim also warned against an escalation of the trade row, saying that if all countries maxed out their trade threats, "We'd see a clear slowdown in the economy and the impact on developing countries would be great". In 2017, India had clocked a 6.7 per cent growth rate.

U.S. growth this year remained steady at 2.9 percent but is set to slow in 2019 as the effect of Trump's sweeping tax cuts wear off and the trade dispute with China begins to set in.

The eurozone's 2018 growth forecast was cut to 2.0 per cent from 2.2 per cent previously, with Germany particularly hard hit by a drop in manufacturing orders and trade volumes.




International Monetary Fund chief economist Maurice Obstfeld, told the audience at the "Prospects of the World Economy" in Indonesia on Tuesday that Argentina's economy will decrease by 2.6 percent by the end of this year, and another 1.6 in 2019.

The IMF also took aim at Brexit in its assessment, as it warned how slow progress in thrashing out an European Union divorce deal for Britain is creating "pervasive uncertainty" about future trade costs.

"An intensification of trade tensions and the associated further rise in policy uncertainty could dent business and financial market sentiment, trigger financial market volatility, and slow investment and trade", the report said.

It also said interest rates would need to rise to curb inflation, but urged the Bank of England to remain "flexible" depending on what happens with Brexit.

"It would also make tradable consumer goods less affordable, harming low-income households disproportionately". It said, the prediction is lower due to recent increase in oil prices and the tightening of global financial conditions.

"Unless growth can be made more inclusive than it has been, centrist and multilateral approaches to politics and policy will become increasingly vulnerable - to the detriment of all", Mr. Obstfeld said.

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