International Monetary Fund lowers South Africa’s economic growth forecasts, urges reforms

International Monetary Fund lowers South Africa’s economic growth forecasts, urges reforms

International Monetary Fund lowers South Africa’s economic growth forecasts, urges reforms

"Nonetheless, despite trade tensions and continued monetary policy normalisation in a few advanced economies, global financial markets have remained buoyant and appear complacent about the risk of a sudden, sharp tightening in financial conditions".

"India's growth is expected to increase to 7.3 per cent in 2018 and to 7.4 per cent in 2019 (slightly lower than in the April 2018 World Economic Outlook (WEO) for 2019, given the recent increase in oil prices and the tightening of global financial conditions), up from 6.7 per cent in 2017", the International Monetary Fund said in its latest World Economic Outlook report.

Under the 2015 Act, China only meets one of the three criteria for currency manipulation, namely that a country runs a significant bilateral trade surplus with the U.S. of at least US$20 billion.

With weakening growth and uncertainties over trade, smoothing the economic impact of structural adjustments and de-risking "is a very hard act of judgment that policymakers in China have to struggle with", Vitor Gaspar, director of the IMF's fiscal affairs department, told reporters at a separate briefing on its Fiscal Monitor, a report that tracks the state of countries' public finances.

Australia would hit 3.2 per cent growth this year before slipping to 2.8 per cent next year, the International Monetary Fund said.

"Up from India's growth rate of 6.7 per cent in 2016, the growth projections for this year and the next reflect "a rebound from transitory shocks" of demonetisation and the implementation of the national Goods and Services Tax" and "strengthening investment and robust private consumption", WEO said.

The IMF expects the United States economy to grow 2.9 per cent this year, the fastest pace since 2005 and unchanged from the July forecast.

Mnuchin was quoted by the Financial Times on Wednesday as saying that the Treasury monitored currency issues "very carefully" and that the Chinese yuan, also known as renminbi, had fallen "significantly" during the year. It had previously predicted jobless rates of 5.5% and 5.2% respectively.

"It is clearly a necessary development for those economies that are showing much improved growth, inflation that is picking up. unemployment that is extremely low", Lagarde told a press briefing at the IMF's annual meeting in Bali.

Consumer prices in Iran, which rose by 9.6 percent in 2017, are now projected to jump by 29.6 percent this year, and by 34.1 percent next year, the IMF's estimates show.

If projections are true, then India would regain the tag of fastest growing major economies of the world, crossing China with more than 0.7 percentage point in 2018 and an impressive 1.2 percentage point growth lead in 2019. The group recently downgraded global growth forecasts.

Some energy-rich emerging market countries have fared better due to higher oil prices, with Saudi Arabia and Russian Federation seeing forecast upgrades. "We look forward to our continuing partnership", it added.

"Where we are now is we've gotten some bad news". "I don't think it will go up to Rs150, the government won't allow the economy to spin out of control", he added.

China, however, could still be labelled a currency manipulator if the US Treasury decides to rely more heavily on the older 1988 Act, which allows for a more subjective assessment of whether a currency is being manipulated to gain unfair competitive advantage in trade.

Trump renewed his threat to impose tariffs on $267 billion worth of additional Chinese imports if Beijing retaliates further with its own higher levies on US products entering China.

It also assumes that Trump imposes a 25% tariff on imported cars and auto parts imports.

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