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

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

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.

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.

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:



Most liked

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.

James Arthur joins stars supporting World Mental Health Day
By extension, this contributes to good mental health for all and the opportunity to change all our futures. One in six people every week experience a common mental health problem like anxiety or depression .

Breast Cancer Awareness Events in Wyoming
In mouse models, the team also demonstrated that collagen XIII expression is necessary for breast cancer metastasis. There's a person at the IU Health Cancer Center who is with you during every step of your journey through treatment.

International Monetary Fund upgrades outlook on Russian Federation as economy recovers
The IMF said Tuesday it projects continued growth in the United States, but at a slower pace next year. So, the country's debt is substantially less than the global debt as percentage of world GDP.

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.

Michael makes its way to ENC
EDT, Michael was centred about 35 miles (60 kilometres) south of Charlotte, North Carolina, with winds of 50 mph (85 kph). Soon enough, Mexico Beach's emerald waters and sugar-sand beaches were covered in a dark sea of debris, Mulligan said.

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.

Samsung launches world’s first four-camera smartphone
Moving on from the camera department, the Samsung Galaxy A9 comes with an unknown octa-core processor that's clocked at 2.2 GHz. The Korean company's new phone will also feature mobile payment capabilities and expandable storage of up to 512GB.

Yao Ming joins China delegation in North Korea for basketball match
The closure of the factory park had deprived Kaesong residents of what had been a steady supply of water and electricity. Still, the lifting of the 2010 sanctions could offer at least some tangible benefits to the North.

Fabinho learning and adapting to Klopp's methods
After starting the season with seven straight victories, Liverpool have now failed to win any of their past four matches.

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.

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.

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.

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.