IMF growth forecast

Why is it in the news?
  • On the release of the World Economic Outlook 2019 April repor, the International Monetary Fund (IMF) has projected that global growth will be 3.3% in 2019, down from 3.6% in 2018 and 4% in 2017.
More in the news
    • The causes given for the lower projection are:
      (1) Lower global expansion in the second half of 2018 caused by U.S.-China trade tensions.
      (2) Macroeconomic stress in Turkey and Argentina.
      (3) Tighter credit policies in China.
      (4) Financial tightening plus a normalisation of monetary policy in advanced economies.
      • The IMF expects growth to pick up in the second half of the year driven by an accommodative policy stance in advanced economies.
      • Beyond 2020, global growth is expected to level out at 3.6% over the medium term, driven by a moderation in expansion in advanced countries.
      • Advanced economies are expected to slow down to 1.6% growth by 2022 and remain at that rate thereafter.
      • Recommendations by IMF:
        (1) Continued implementation of structural and financial sector reforms in order to lower public debt and aid growth.
        (2) Continued fiscal consolidation is needed to bring down public debt, strengthening goods and services tax compliance and lowering subsidies.
        • India:
          (1) India’s growth is projected to pick up (from 7.1% in 2018) to 7.3% in 2019 and 7.5% in 2020.
          (2) These forecasts are nevertheless less by 10 and 20 basis points from the January and October forecasts.
        About IMF
          • The IMF, also known as the Fund, was conceived at a UN conference in Bretton Woods, New Hampshire, United States, in July 1944.
          • The International Monetary Fund (IMF) is an organization of 189 countries.
          • The IMF's primary purpose is to ensure the stability of the international monetary system.
          • Its other objectives are :
            (1) Working to foster global monetary cooperation.
            (2) Secure financial stability.
            (3) Facilitate international trade.
            (4) Promote high employment and sustainable economic growth.
            (5) Reduce poverty around the world. 
            • IMF is headquartered in Washington, D.C.
          Source
          The Hindu.



          Posted by Jawwad Kazi on 10th Apr 2019
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