No-deal Brexit and Chinese slump are biggest economic risks

Indian economy poised to pick up in 2019, says IMF

The International Monetary Fund has cut its forecast for world economic growth this year, citing heightened trade tensions and rising USA interest rates.

The other positive is actually the forecast growth going up in 2019 because of two factors - the lower commodity prices, and a more accommodative monetary policy, she said.

The Washington-based lender held its 2019 growth forecast at 1.5 per cent, saying the fiscal stimulus announced in the October 29 budget would likely help offset the dampening effect which Brexit fears are having on the world's fifth-biggest economy.

At the launch of the report in Davos, Switzerland, Gopinath said: "The global expansion is weakening and at a rate that is somewhat faster than expected".

The Washington-based fund said, "In sub-Saharan Africa, growth is expected to pick up from 2.9 per cent in 2018 to 3.5 per cent in 2019, and 3.6 per cent in 2020".

In its World Economic Outlook update for January, the International Monetary Fund raised its growth forecast for the Kingdom by 0.2 percentage points, to 2.1 percent.

The IMF sees growth in Saudi Arabia for 2019 at 1.8 percent, compared to 2.4 percent expected last October, while it lifted its 2020 economic growth forecast by 0.2 percentage point from October to 2.1 percent. The Sarb growth forecast for this year is 1.7 percent, down from 1.9 percent; it is unchanged at 2 percent for 2020 and increases to 2.2 percent in 2021.

"We believe the risks to more significant downward corrections are rising".




The IMF said the forecasts for both this year and next were previously pared partly due to the negative impacts of the US-China trade war.

The lender further said China's growth slowdown could be faster than expected, particularly if trade tension continued, and that could trigger abrupt sell-offs in financial and commodity markets as was the case in 2015/16. "An escalation of trade tensions beyond those already incorporated in the forecast remains a key source of risk to the outlook", it said.

A survey by auditing and accounting giant PwC of almost 1,400 chief executives found that 29 percent believe global economic growth will decline over the next 12 months, the highest percentage since 2012.

China released data on Monday showing its economic growth fell a year ago to 6.6 percent, the slowest pace since 1990.

Yesterday Trade Minister Simon Birmingham told British businesspeople in London he wants the new arrangements in place as soon as possible after Brexit.

The figures from the National Bureau of Statistics drags full-year growth down to 6.6 percent, the slowest annual pace since 1990.

The World Bank and the Organization for Economic Cooperation and Development have also downgraded their world growth forecasts. "Higher trade uncertainty will further dampen investment and disrupt global supply chains", she said.

As the debts roll over, those borrowers have to refinance at higher rates.

Related news:

Hot News

isis-killer-beheading-video-story-top Netflix shows Bird Box and Elite drive subscriber growth
Jan 22, 2019 - 11:03
Netflix said its programming was so popular it now accounts for about 10 percent of television screen time in the United States. From a direct-to-door DVD delivery service to the premiere content streamer in the world, Netflix is at the top of its game.

isis-killer-beheading-video-story-top Met Eireann issue Status Yellow - Snow-Ice warning for entire country
Jan 22, 2019 - 11:02
Snow will fall mainly on high ground and it will feel chilly thanks to a brisk breeze, with a maximum temperature of 4C. Friday looks set to be fairly decent with only clouds and spells of patchy rain set to arrive.

isis-killer-beheading-video-story-top Rising Manchester United Star Signs New Contract Until 2023
Jan 22, 2019 - 10:29
Former United star Wayne Rooney says he advised Rashford when he returned to worldwide duty against the United States a year ago . In form United , who have won their last seven fixtures, take on bitter foes Arsenal in the FA Cup on Friday.

isis-killer-beheading-video-story-top Gonzalo Higuain dropped by AC Milan amid Chelsea ‘rumours’
Jan 22, 2019 - 10:17
Chelsea are close to signing Higuain on loan from Juventus with the player primed to cut his loan spell at AC Milan short. Milan are hopeful of signing Genoa striker Krzysztof Piatek , enabling Higuain's move to Chelsea .

isis-killer-beheading-video-story-top Serena is ready to win the Australian Open, says coach Mouratoglou
Jan 22, 2019 - 06:58
The Australian Open is the year's first Grand Slam championship - the most important tennis events held annually. I don't know, it's definitely something that's innate. "I'm not even dealing with that right now", said Serena.

isis-killer-beheading-video-story-top Ariana Grande’s ‘7 Rings’ an ‘anthem’ for women empowerment
Jan 21, 2019 - 01:26
Puerto Rican rapper Princess Nokia has called out Ariana Grande for plagiarizing her sound on Grande's new single, " 7 Rings ". Frasqueri asks, "Does that sound familiar to you? Hmm... sounds about white ".

isis-killer-beheading-video-story-top Presidential Office: Seoul welcomes planned second Trump-Kim summit
Jan 21, 2019 - 01:21
The special USA envoy for North Korea negotiations, Steve Biegun, planned to travel to Sweden for further talks over the weekend. But the summit ushered in a new era for diplomatic ties between the two entities on the Korean peninsula.

isis-killer-beheading-video-story-top United should go "all out" for Pochettino, says Wayne Rooney
Jan 21, 2019 - 01:13
When you come here you know you've got to stay in the game, and we've paid the price for a slow start and poor goals conceded. "It was good.

isis-killer-beheading-video-story-top Trump Fires Back After Pelosi Rejects Border Wall Compromise Offer
Jan 21, 2019 - 00:44
DACA and TPS were programs previously targeted by the Trump administration, despite bipartisan criticism. But Democrats appear ready to reject the deal, as House Speaker Nancy Pelosi called it a "non-starter ".

isis-killer-beheading-video-story-top Nigeria to experience total lunar eclipse tomorrow
Jan 21, 2019 - 00:27
The lunar eclipse , which will take place between 3am and 6am, will also turn the moon a shade of red, hence the name blood moon . The lunar eclipse will be visible from cities, as long as the weather conditions are right and there aren't too many clouds.

isis-killer-beheading-video-story-top Bouchard books Serena showdown and admits: 'I love her'
Jan 20, 2019 - 18:14
It's clear: There is no one who can match Serena Williams when it comes to style on the tennis court. My fellow moms and dads working - or stay home it's equally as intense - but you inspire me'.

isis-killer-beheading-video-story-top Steve Carell to star in new Netflix comedy series 'Space Force'
Jan 20, 2019 - 17:45
We don't know when Space Force is coming out, but Netflix did say "coming soon ", so fingers crossed that it actually is soon . The series takes aim at President Donald Trump , who once discussed the creation of an American Space Force in 2018.

isis-killer-beheading-video-story-top Kyrie apologizes to LeBron for 'being that young player' in Cleveland
Jan 20, 2019 - 14:02
Cleveland's Kevin Love told The Athletic he was out with LeBron in L.A. when Irving called to apologize . But this thing like, "I called LeBron because he taught me to be a leader" - then be a leader.

isis-killer-beheading-video-story-top How to watch Manny Pacquiao vs. Adrien Broner
Jan 20, 2019 - 11:25
Pacquiao continually moved forward throwing punches from all angles and all Broner could do was try to tie him up. He darted in and out on Broner and landed multiple crisp shots while Broner could barely land anything.

isis-killer-beheading-video-story-top 'Great day' for USA after report disputed
Jan 19, 2019 - 12:50
EST, Buzzfeed finally switched its story for a report on a deadly pipeline explosion in Tlahuelilpan, Mexico. Asked by BuzzFeed if the House intelligence panel will look into the allegations, a gleefull Rep.