International Monetary Fund predicts 7.3% growth rate for India in current fiscal year

International Monetary Fund predicts 7.3% growth rate for India in current fiscal year

The International Monetary Fund (IMF) on Tuesday cut South Africa's economic growth forecasts for this year and next, citing urgent reforms to shore up its growth.

Noting that growth in the United States, buoyed by a procyclical fiscal package, continues at a robust pace and is driving USA interest rates higher, Mr. Obstfeld said U.S. growth will decline once parts of its fiscal stimulus go into reverse.

The US simultaneously threatened to add tariffs to a further $267 billion (£205 billion) of products, which saw China retaliate with 10 percent tariffs on $60 billion (£46 billion) of US imports.

Jameel Ahmad, global head of Currency Strategy & Market Research at FXTM, said by all accounts, situation for rupee could get much worse before it gets better. -China tariff war's impact to be felt next year, the fund cut its 2019 US growth forecast to 2.5 percent from 2.7 percent, while it cut China's 2019 growth forecast to 6.2 percent from 6.4 percent.

The IMF's projection is close to the World Bank's forecast of 7 percent for fiscal 2018-19, released on Oct 2.

Infrastructure needs: Pakistan needs more infrastructure development, Obstfeld added, and the country could benefit from China's role in supporting its project financing.

Downgrades to global growth also reflected predictions of a slower expansion in the eurozone as well as turbulence in a number of emerging market economies.

The IMF sees 3.5% growth in Israel in 2019, 3.3% in 2020 and 3% in 2021-2023. Previous forecast rate for 2018, announced in July, was 4.2 percent.

After taking into account the current situation and consultation with the leading economists, the government has chose to approach the International Monetary Fund for stabilisation and an economic recovery programme. "In Nigeria, inflation is projected to fall to 12.4 percent in 2018, from 16.5 percent in 2017, and to rise to 13.5 percent in 2019", the report read.

If the projections are true, then India will regain the tag of the 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.

"A catalyst like earnings will give investors something to look forward to but right now it's just a continuation of negative news for equities, with higher yields and slowing global growth", Cardillo said.

Russian Federation was among the few energy-rich emerging market countries whose growth forecasts were bumped up.

But the already tricky transition has been complicated by US President Donald Trump's use of import tariffs to punish China for what he considers predatory trade practices.

The IMF concluded a consultative visit last week with a warning that Pakistan needed to quickly secure "significant external financing" to stave off a crisis, though it did not suggest who could supply the money.

Trump has led the escalating trade war because of what he believes are bad policies he said have created an $800 billion USA trade deficit.

"This is not true in emerging and developing economies, where financial conditions have tightened markedly over the past six months", he said. The government inherited 6.6 percent of fiscal deficit, more than a trillion rupees of unaccounted for losses in the energy sector and an unprecedented and debilitating current account deficit running at $2 billion a month.