Asian markets close lower amid IMF’s global growth forecast downgrade

He says efforts are afoot to protect the interests of lower income segments of society

The International Monetary Fund (IMF) on Tuesday downgraded its outlook for the world economy, warning that the imposition of import tariffs between the U.S. and China were taking its toll on global trade.

"We are seeing more and more - China included - countries that actually let their currency fluctuate, and that certainly has been the case over the last three years as far as China is concerned", she said. The FTSE 100, which closed at 7,233.33, is forecast to open 10 points higher when trading begins shortly.

Global growth is expected to remain steady at 3.7 per cent in 2020, as the decline in advanced economy growth with the unwinding of the U.S. fiscal stimulus and the fading of the favorable spillovers from USA demand to trading partners is offset by a pickup in emerging market and developing economy growth. The IMF has, therefore, not changed its estimate for the US' growth in 2018 keeping it as is at 2.9%.

Regionally the growth forecast for the Middle East and North Africa was lowered by 1.2 and 1.3 percentage points to 2 and 2.5 per cent for this year and 2019. The IMF downgraded its forecast for global growth this year and next to 3.7 percent (down from 3.9 percent in April).

"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.

The US growth forecast for 2019 is down from 2.7% to 2.5%. "Any sharp reversal for emerging markets would pose a significant threat to advanced economies".

World Bank President Jim Yong Kim said he's concerned about developing economies losing out from deepening trade tensions, which are being escalated by the U.S.

Dow Jones drops 832 points in third worst drop in history
The 10-year yield is now 3.20 percent, the highest in than seven years and up sharply form 2.82 percent in late August. The S&P 500 was off by 1.7 percent, putting it on pace for its first five-day losing streak in two years.

It also said Ghana's current account position will however remain negative though lower than before.

Responding to whether the global economy is "safe enough", Lagarde pointed out that "the bottom line is this: ten years after the global financial crisis, we are safer, and measures have been taken, but we are not safe enough".

The outlook for world trade overall also darkened: The fund expects global trade to grow 4.2 percent this year, down from 5.2 percent in 2017 and from the 4.8 percent it expected in July.

Over the longer term, the International Monetary Fund sees ageing populations and sluggish productivity growth as a major challenge to advanced economies.

Thus the expansion of the global economy would be reduced to around 2.9% both next year and in 2020.

United Kingdom growth has been drastically cut in the aftermath of the Brexit vote; uncertainties surrounding the country's divorce from the European Union have stymied investment and seen part of its key financial sector relocate to the continent.

Elsewhere, the IMF said a key risk to financial conditions was if the Federal Reserve tightened monetary policy faster than market expectations.

Related News:

  • Trump aide sought social media manipulation from Israeli intelligence firm

    Trump aide sought social media manipulation from Israeli intelligence firm

    He faces a possible six years in prison, though the plea deal he agreed to with the special counsel could reduce the sentence. The Times said Gates sought a proposal from Psy-Group, a company founded by Israeli intelligence officers.
    Nick Kyrgios beats hasty Shanghai retreat for third year running

    Nick Kyrgios beats hasty Shanghai retreat for third year running

    He was also fined $US1,500 at the 2015 edition of the tournament after audibly swearing and complaining the event was a "circus" . Nick Kyrgios continued his Shanghai nightmare with a first-round exit. "You know exactly what I meant, Nick".
    Saudi troops were part of alleged 'hit squad' that targeted Khashoggi

    Saudi troops were part of alleged 'hit squad' that targeted Khashoggi

    Cengiz called on President Trump and first lady Melania Trump to "help shed light" on Khashoggi's disappearance. Why it matters: The incident threatens a diplomatic crisis in Turkey's relations with Saudi Arabia .
  • India name unchanged 12-man squad for 2nd Test

    India name unchanged 12-man squad for 2nd Test

    Kedar Jadhav's dodgy hamstring will rule him out of the limited-overs leg which opens up one potential middle-order batting slot. Khaleel Ahmed has also been included on the back of some good performances at the recently concluded Asia Cup.
    Over A Dozen Misconduct Complaints Against Kavanaugh Reach Chief Justice Roberts

    Over A Dozen Misconduct Complaints Against Kavanaugh Reach Chief Justice Roberts

    "It would be a shame because we would be wasting a lot of time", Trump said of the possibility that Democrats take the House. Supreme Court "is not a partisan or political institution", and is promising to "always be a team player on a team of nine".
    Australian government backs coal despite 'global catastrophe' climate warning

    Australian government backs coal despite 'global catastrophe' climate warning

    The report also notes that "any remaining emissions would need to be balanced by removing Carbon dioxide from the air". The world is filled with climate-change hypocrites who want America to pay all the costs and make all the sacrifices.
  • Gas Pipeline Explosion Could Cause Gas Prices to Spike

    Gas Pipeline Explosion Could Cause Gas Prices to Spike

    Restaurants around the province, on the other hand, are looking at ways of using less natural gas. Puget Sound Energy asked its customers in a tweet on Wednesday to conserve natural gas.
    Google pulls out of competition for $10B Pentagon cloud contract

    Google pulls out of competition for $10B Pentagon cloud contract

    The tech firm revealed the latest decision hours after confirming it had exposed Google + users' personal data. Google would have bid on the proposal if the project had been split, the company says.

    Polio-like disease that's paralyzing kids now in Chicago, Pittsburgh

    The condition is still very rare, occurring in fewer than one in a million people in the US each year, the CDC says . As limbs become weak, a patient might lose the ability to use their arms or legs.
  • Giants parting ways with OT Flowers

    Giants parting ways with OT Flowers

    NY has FINALLY realized that , and the former Miami Hurricane will reportedly be released on Tuesday if he's not traded by 4 p.m. Flowers, 24, is in the final year of a four-year, $14.3 million rookie contract, which includes a team option.
    Kanye West goes on a freakish  rant in the Oval Office

    Kanye West goes on a freakish rant in the Oval Office

    There's no word on if Kid Rock, who was also spotted arriving at the White House on Thursday, was around during the conversation. Kanye was The White House when President Trump signed the 2018 Music Modernization Act (MMA), which was passed by U.S.

    Selena Gomez receiving treatment after suffering emotional breakdown

    Singer Selena Gomez is said to be receiving treatment at a mental health facility after a rough couple of weeks. News the star had been overwhelmed by her health challenges when she broke down.


Most liked

Soyuz rocket carrying astronauts forced into emergency landing after malfunction
Just over a minute after the launch, the spacecraft's booster failed and the launch was aborted. Manned space launches have been suspended pending an investigation.

Meghan Markle's Ex-Husband Trevor Engelson Has Engagement Party
Samantha was later photographed holding masks of Meghan and Harry's faces, which she repeatedly purchased at a souvenir stand. Eugenie and Jack have shared family photographs from their childhood on the eve of their wedding.

F-35 Jets: Military grounds entire fleet
F-35 combat jets was grounded to investigate engine problems that may have caused a Marine Corps plane crash last month. In response, all United States military F-35s will be inspected as well as F-35s operated by U.S. allies.

Trump, Kanye Meet In The Oval Office
Instead, the company has suggested in the past that users select passcodes with unique significance only they may know. It's handsome though." He said that Trump had given him (we assume metaphorically) "a Superman cape " to help do good.

Will Smith reveals first post for Disney's 'Aladdin'
Aladdin plans to uses these wishes to win over the handsome Princess Jasmine , but the evil Jafar has other plans. Disney knows a good thing when they see it, so they're all-in on live-action remakes of their animated hits.

Facebook makes foray into world of connected devices with Portal
Gadgets out in a competitive market, where they will face the foremost smart column display Echo Show from Amazon, says Bloomberg. Facebook also says it will not listen to the contents of the calls, a problem that has hit Amazon's Alexa in the past.

Here's What Kanye West Said to President Trump at the White House
When the press in attendance tried to ask more questions, he once again yelled: 'I don't answer questions as simple soundbites. West went on to say that black people "get caught up in the idea of racism". "And we met, and I just appreciate it very much".

Samsung Galaxy A9 quad-camera detailed: tele, standard, wide, depth
If you need more, you can pop a microSD card into the dedicated slot on the A7's triple SIM tray for up to 512GB of extra space. With it enabled, a "Samsung Quad camera" watermark will be applied automatically to all photos captured using the device.

Here’s what happened at Kanye West’s incredibly freaky meeting with Donald Trump
Also attending is former National Football League great Jim Brown, a civil rights leader who has met with Trump previously. But the encounter veered into many more topics, a lot of them having to do with the administration's accomplishments.

Advice from Wicklow County Council as the country prepares for Storm Callum
Arriva is also cancelling services between Llandudno Junction and Blaenau Ffestiniog on both Friday and Saturday. There is a chance of gusts of 70 to 80 miles per hour in the Western Isles during Friday afternoon and evening.

MSNBC Host Suggests Saudis Are Bribing Trump So They Can Assassinate Critics
Turkish security sources on Wednesday identified eight out 15 suspects linked to Khashoggi's disappearance. The unnamed official who spoke to the Times said it was "like "Pulp Fiction" in its gruesomeness.

Trump questions United Nations global warming report
Ninety-one authors and review editors from 40 countries prepared the IPCC report , which contains 6,000 scientific references. We have been warned: There are now only 12 years left for us to stop global warming in its tracks.

Richard Branson says he'll put Virgin Galactic in space 'within weeks'
But delays and a fatal crash in 2014 prevented Sir Richard's original ambitions. "We should be in space within weeks, not months ".

Manchester United under pressure due to poor form - Fred
Mourinho was reportedly angered by Pogba's post-match comments on United's 1-1 draw with newly promoted Wolverhampton Wanderers. He will be there on the pitch and show you the way.

Waiting ends: Michael makes landfall with 155 miles per hour winds
The Suwannee Valley is expected to experience sustained 40-50 miles per hour winds with gusts up to 75 miles per hour . Warmer water acts as fuel for a hurricane , helping it develop into a more destructive, windier storm.