Emerging economies at risk amid 'complacent' markets, International Monetary Fund says

10 October, 2018, 12:36 | Author: Billie Castillo
  • Punjab CM Usman Buzdar welcoming PM Imran Khan. — PTI

In the latest WEO report, the International Monetary Fund also raised its 2019 inflation projection to four percent from 3.9 percent in the Staff Report for the Philippines, but retained the 4.9 percent projection for this year. It was the first downgrade since July 2016.

Italian government bond yields rose to a 4 1/2-year high of 3.71 per cent after Economy Minister Giovanni Tria's address to parliament on the government's budget plans did little to reassure nervous investors. The IMF talked about continued capital outflows from emerging market economies and pressure on exchange rates because of monetary normalisation in the US.

"There are clouds on the horizon", Obstfeld added.

The worldwide organisation warned a full-blown trade war between the U.S. and China could have wider implications for the financial growth around the world.

The warning comes as finance ministers and central bankers from the IMF's 189 member nations prepare to meet this week in Bali for the annual meetings of the fund and its sister institution, the World Bank.

It found that global GDP output under this scenario would fall by more than 0.8% in 2020 and remain roughly 0.4% lower in the long-term compared to levels without these effects, which "inflict significant costs to the global economy, especially through its impact on confidence and financial conditions". Britain's FTSE 100 dropped 0.4 per cent to 7,201.

Eric LeCompte, a financial expert and executive director of Jubilee USA said: "We are seeing growing debt crises in many developing economies, at the same time, we see risky and speculative behaviour on the raise".

The event will mark the introduction of Ruby Rose as Batwoman and the first appearance of Gotham City in the Arrowverse . The character of Batwoman is, despite the closeness of the names, not Batgirl as most Batman-franchise fans know her.

The IMF's cut to its outlook was broad-based. It is therefore closer to the government's forecast for 2.5 percent growth, and the latest projection by the European Commission (in July) for 2.3 percent. The Trump administration has penalized almost half of all imports from China and has threatened more for the other half.

The downgrade reflects a confluence of factors, including the introduction of import tariffs between the USA and China, weaker performances by euro zone countries, Japan and Britain.

While Nigeria will grow from 1.9 per cent in 2018 to 2.3 percent in 2019, South Africa and Angola were projected to move from 0.8 to 1.4 and -0.1 to 3.1 per cents respectively, the International Monetary Fund said yesterday. He said the State Bank has already raised interest rates by 275 basis points to 8.5 percent in calendar year to date.

Japan's benchmark Nikkei 225 fell 1.3 per cent to 23,469.39.

Several emerging markets had their forecasts cut, including Argentina, Brazil, Iran and Turkey, reflecting factors including tighter credit.

"Global financial conditions are expected to tighten as monetary policy normalizes; the trade measures implemented since April will weigh on activity in 2019 and beyond; USA fiscal policy will subtract momentum starting in 2020; and China will slow, reflecting weaker credit growth and rising trade barriers", the report said.

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.


  • Clinton says Trump remarks at Kavanaugh swearing-in undermine Supreme Court

    Clinton says Trump remarks at Kavanaugh swearing-in undermine Supreme Court

    He was referring to the acrimonious debate over Mr Kavanaugh's nomination, after sexual assault allegations were made against him. Trump on Twitter on Tuesday said he was "very proud" of Kavanaugh and his family, and disparaged the anti-Kavanaugh protesters.
    Intel reveals new 9th gen Core CPUs, led by Core i9-9900K

    Intel reveals new 9th gen Core CPUs, led by Core i9-9900K

    The Intel Core i7-9700K sadly comes doesn't come in at the same $359 (£389, AU$524) price the Intel Core i7-8700K did. Intel says that the Core i9-9900K would cost you $488 and you can pre-order the new processors today.
    Facebook debuts new video chatting device Portal amid privacy and security concerns

    Facebook debuts new video chatting device Portal amid privacy and security concerns

    On Monday, Facebook unveiled the $200 (U.S.) Portal , the first-ever consumer hardware from the world's largest social network. Facebook is a software company famous for pushing out products quickly and adjusting later depending on the level of uproar.
  • Rand strengthens as Nhlanhla Nene flies to International Monetary Fund  meeting

    Rand strengthens as Nhlanhla Nene flies to International Monetary Fund meeting

    She said there had been ongoing engagements between the two and that Nene had briefed him on the details around his testimony. "These visits do cast a shadow on my conduct as a public office bearer", Nene said in a statement.
    Bulgaria: Journalist Viktoria Marinova Found Raped and Murdered

    Bulgaria: Journalist Viktoria Marinova Found Raped and Murdered

    Dimitar Stoyanov, of the Bivol website, and Attila Biro, from the Romanian Rise Project , have alleged a ring of consultancy firms...
    Judge powers Yanks past Oakland in AL Wild Card; Boston next

    Judge powers Yanks past Oakland in AL Wild Card; Boston next

    Eovaldi was 3-3 with a 3.33 ERA in 11 starts and one relief appearance for the Red Sox , who acquired him from Tampa Bay in July. Zimmer, a former Boston manager and then a Yankees coach, ran across the infield and lunged at Martinez during the fighting.
  • John Terry announces retirement from football

    John Terry announces retirement from football

    Terry also won five FA Cups, a three league cups and an Europa League title in more than 700 appearances for Chelsea. I look forward to the next chapter in my life and the challenges in my head.

    Google poised to unveil new Pixel phones, other services

    Just like always, The company is expected to launch a new smart home assistant and this year it might be called as Home Hub. In case you missed all of the Google Pixel 3 launch event leaks , here's a catch-up on everything we expect in a few hours.
    Left turns vicious on Sen. Susan Collins

    Left turns vicious on Sen. Susan Collins

    Lisa Murkowski (left) crossed the aisle and indicated that she will not vote to confirm Kavanaugh, while Virginia Democratic Sen. She called it "the most hard in the 22 years that I've been honored to represent the state of Maine in the Senate".
  • Korean president to meet Pope with message from N. Korea

    Korean president to meet Pope with message from N. Korea

    South Korean Foreign Minister Kang Kyung-wha has given a hint of what a grand bargain between the two countries could look like. The pair discussed ending the reclusive state's nuclear weapons program and hostilities between Washington and Pyongyang.

    Google Pixel Slate: What to expect for this Chrome OS tablet

    The device should run regular Android apps, and it may feature an ARM-based mobile processor or an ultra-low power CPU from Intel. Talking about Pixelbook 2, the Chrome OS notebook is expected to retain the same form factor and ports as the first model .
    The Chaser Projected Alan Jones Phone Number Onto Sydney Opera House

    The Chaser Projected Alan Jones Phone Number Onto Sydney Opera House

    Death threats, protests and a viral petition over the move has forced police to beef up security at the national landmark. An online petition has gathered more than 250,000 signatures in a bid to "save" the Opera House from commercialisation.


Film body promises action against 'vile creature' Alok Nath on rape allegations
Midway I was accosted by this man who was driving his own auto and he asked me to sit in it and said he would drop me home. Alok Nath also went on to say that he is not affected with what people will say after being accused of sexual violation.

India vs West Indies live scores first Test day three
Ashwin, surpassed the legendary Allan Donald in terms of Test wickets and now holds 333 scalps in 63 Tests played to date . England will have to win the away series against Sri Lanka, starting October 10, to retain their number one ranking.

Wolves, Heat Nearly Reach Deal On Jimmy Butler Before Talks Collapse
It would have sent the Timberwolves' disgruntled star to Miami as part of a trade package, according to Woj. Butler remains away from the team officially as he rehabilitates his surgically-repaired right hand.

Oil price drops to $83 on signs of Iran’s exports
Speaking at an event here, Pradhan said two of India's state-owned companies had contracted for Iranian crude for November. The Indian Oil Corporation and Mangalore Refinery and Petrochemicals have ordered a total 1.25 million tonnes of crude.

Drew Brees Has Fantastic Career Numbers On MNF
Saints: In addition to Lattimore, reserve defensive lineman Taylor Stallworth limped off the field, favouring his right leg. The 39-year-old also referenced a preseason game in Miami during his rookie season with the San Diego Chargers in 2001.

What's to come from Google on the 9th of October
Google could also announce a rumoured Pixel Mini phone and perhaps second generation Pixel Buds and a Pixel tablet as well. We don't know about the price just yet but it's expected to be somewhere around, or likely upwards of AUD $1079.

Pakistan on top of Aussies in Dubai Test
Peter Siddle provided the breakthrough for Australia as he clean bowled Mohammad Abbas for one run. The second and final test will be played on October 16 in Abu Dhabi.

GoFundMe campaigns launch for victims of limo crash that killed 20
Three years ago, four women were killed in a limousine on Long Island as they toured wineries when the vehicle was hit by a truck. The massive vehicle, speeding downhill, approached the intersection of two highways that residents had long warned was risky .

United Nations report warns of possible climate disaster by 2040
Well, it will require rapid, far-reaching and unprecedented change across the whole of society, according to the report . At current rates of greenhouse gas emissions, Earth will zoom past the 1.5°C signpost around 2040, and as early as 2030.

Far-Right Bolsonaro Wins First Round of Presidential Election
Asked whom he would endorse, Gomes referred to the slogan of anti-Bolsonaro protesters in recent weeks: "Not him, certainly". Yet one-third of Brazilian voters - more than voted for Haddad - either stayed home, or cast blank or null ballots.