The international monetary fund has issued a warning that a third of the global economy will be in recession this year. China will face a rocky start to 2023, while the U.S. will be at the edge of a recession. This comes as the war continues in Ukraine, inflation soars, and interest rates continue to spike. What does it spell for South Asian nations? Molly Gambhir tells you more.

Gravitas: IMF: Global economy faces a tougher year

International Monetary Fund chief Kristalina Georgieva has said that 2023 is going to be a tough year for the global economy as the United States, China and Europe are experiencing a slowdown.

Third of world in recession this year, warns IMF head

For much of the global economy, the new year 2023 will be more difficult compared to the previous years, said the International Monetary Fund (IMF) on Sunday. The weakening of financial activities in the leading nations, the United States, Europe, and China, has hurt the global economy.&nbsp;

Kristalina Georgieva, IMF's Managing Director, said that 2023 is more challenging than the year we leave behind, Reuters news agency reported. She stated the reason for the global economy's downturn and said, "Because the three big economies, the US, EU, and China, all are slowing down simultaneously."

IMF's stance on global economic growth in 2023, released in October 2022, highlights the influence of the ongoing Russia-Ukraine war and the surge in inflation and interest rates. Central banks like the US Federal Reserve monitor such rates to impact the prices. 
 
Also Read|&nbsp;<a href="www.wionews.com/business-economy/five-signs-why-global-economy-is-headed-for-recession-522569">Five signs why global economy is headed for recession</a>

The rejuvenation of China's economy marked its upliftment of the zero-Covid policy. Amid the surge in coronavirus cases, Chinese President Xi Jinping urged the citizens to put more effort as China enters a 'new phase.' However, Georgieva said, "For the first time in 40 years, China's growth will be equal to or below the global growth."

Georgieva warned that the rapid spread of COVID-19 infections would drag down the regional and global economy. The recent wave might get worse once people start travelling, she added.

Watch|&nbsp;World Business Watch: China's manufacturing contracts at sharpest pace in three years

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IMF will disclose the updated predictions during the World Economic Forum in Davos, Switzerland.&nbsp;

Talking about the US economy, the IMF said the US might be able to avoid the direct torment of recession, unlike a third of the world's economies. As the US labour market is strong, it may be able to dodge the global recession, she added.&nbsp;

However, it may hinder the high-interest rates imposed by the Federal Reserve Board to push down inflation. Fed officials will make the US job market their prime focus.&nbsp;

Official data shows that the US economy created 200,000 jobs in December 2022. Moreover, the occupation front remains stable as the employment rate stayed at 3.7 per cent, one of the lowest since the 1960s. 
 
(With inputs from agencies)

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For much of the global economy, the new year 2023 will be more difficult compared to the previous years, said the International Monetary Fund (IMF) on Sunday. The weakening of financial activities in the leading nations, the United States, Europe, and China, has hurt the global economy.

For much of the global economy, the new year 2023 will be more difficult compared to the previous years, said the International Monetary Fund (IMF) on Sunday. The weakening of financial activities in the leading nations, the United States, Europe, and China, has hurt the global economy. Kristalina Georgieva, IMF's Managing Director, said that 2023 is more challenging than the year we leave behind, Reuters news agency reported. She stated the reason for the global economy's downturn and said, "Because the three big economies, the US, EU, and China, all are slowing down simultaneously." IMF's stance on global economic growth in 2023, released in October 2022, highlights the influence of the ongoing Russia-Ukraine war and the surge in inflation and interest rates. Central banks like the US Federal Reserve monitor such rates to impact the prices. Also Read| Five signs why global economy is headed for recession The rejuvenation of China's economy marked its upliftment of the zero-Covid policy. Amid the surge in coronavirus cases, Chinese President Xi Jinping urged the citizens to put more effort as China enters a 'new phase.' However, Georgieva said, "For the first time in 40 years, China's growth will be equal to or below the global growth." Georgieva warned that the rapid spread of COVID-19 infections would drag down the regional and global economy. The recent wave might get worse once people start travelling, she added. Watch| World Business Watch: China's manufacturing contracts at sharpest pace in three years IMF will disclose the updated predictions during the World Economic Forum in Davos, Switzerland. Talking about the US economy, the IMF said the US might be able to avoid the direct torment of recession, unlike a third of the world's economies. As the US labour market is strong, it may be able to dodge the global recession, she added. However, it may hinder the high-interest rates imposed by the Federal Reserve Board to push down inflation. Fed officials will make the US job market their prime focus. Official data shows that the US economy created 200,000 jobs in December 2022. Moreover, the occupation front remains stable as the employment rate stayed at 3.7 per cent, one of the lowest since the 1960s. (With inputs from agencies) WATCH WION LIVE HERE

Third of global economy to face recession in 2023, warns IMF head

Pakistan needs to answer many questions. The country's economy is in the doldrums and its impact has left no one untouched. Its resources are bleeding with no funds coming Islamabad's way.

IMF to Pakistan: Time to take ‘required actions’; rupee devalued at Rs 220 against a dollar

The International Monetary Fund reported on Friday that India is navigating an "extremely tough" external environment, projecting growth rates of 6.8 per cent&nbsp;and 6.1 per cent for the current and following fiscal years, respectively. In her virtual conversation&nbsp;with reporters, Choueiri Nada, IMF's India Mission Chief, reaffirmed that India continues to be the lone bright spot in an otherwise bleak picture of the world economy.

“We are seeing the economy continue to grow pretty robustly this fiscal year,” Nada said as the international financial body released the report of its annual consultations with India.

The report predicts that growth would slow down as a result of the less optimistic outlook and the tighter financial environment. According to the IMF's report&nbsp;on India, the real GDP is expected to rise at 6.8 per cent&nbsp;and 6.1 per cent&nbsp;respectively in FY2022/23 and FY2023/24.

Also read |&nbsp;<a href="https://www.wionews.com/india-general-elections-2019/ex-icici-bank-ceo-chanda-kochhar-husband-arrested-by-cbi-in-videocon-loan-fraud-case-546165">Ex-ICICI bank CEO Chanda Kochhar, husband arrested by CBI in Videocon loan fraud case</a>

These projections are much better than they have been projecting earlier, Nada said. “In fact, in our projections, India is contributing half a per cent to global growth this year and next,” she said.

“But, of course, there are important risks and to have asked about those, we see that the risks are mostly on the downside and mostly coming from external factors. Perhaps the most important risk is sharper than anticipated global slowdown,” she said.

Also watch |&nbsp;World Business Watch: Wall Street tumbles on rate, recession worries

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The medium-term growth potential of India could be enhanced by either the effective implementation of extensive reforms or higher than anticipated benefits from the outstanding advancements in digitalisation.

(With inputs from agencies)

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The International Monetary Fund reported on Friday that India is navigating an "extremely tough" external environment, projecting growth rates of 6.8 per cent and 6.

The International Monetary Fund reported on Friday that India is navigating an "extremely tough" external environment, projecting growth rates of 6.8 per cent and 6.1 per cent for the current and following fiscal years, respectively. In her virtual conversation with reporters, Choueiri Nada, IMF's India Mission Chief, reaffirmed that India continues to be the lone bright spot in an otherwise bleak picture of the world economy. “We are seeing the economy continue to grow pretty robustly this fiscal year,” Nada said as the international financial body released the report of its annual consultations with India. The report predicts that growth would slow down as a result of the less optimistic outlook and the tighter financial environment. According to the IMF's report on India, the real GDP is expected to rise at 6.8 per cent and 6.1 per cent respectively in FY2022/23 and FY2023/24. Also read | Ex-ICICI bank CEO Chanda Kochhar, husband arrested by CBI in Videocon loan fraud case These projections are much better than they have been projecting earlier, Nada said. “In fact, in our projections, India is contributing half a per cent to global growth this year and next,” she said. “But, of course, there are important risks and to have asked about those, we see that the risks are mostly on the downside and mostly coming from external factors. Perhaps the most important risk is sharper than anticipated global slowdown,” she said. Also watch | World Business Watch: Wall Street tumbles on rate, recession worries The medium-term growth potential of India could be enhanced by either the effective implementation of extensive reforms or higher than anticipated benefits from the outstanding advancements in digitalisation. (With inputs from agencies) WATCH WION LIVE HERE:

IMF projects 6.8 per cent GDP growth for India next year

After months of reeling under the worst economic crisis, Sri Lanka is hoping that growth returns to the nation. The country is expecting as much as $5 billion in loans next year from multilateral agencies besides an IMF deal, while the government is aiming to raise up to $3 billion via restructuring of state assets.

Sri Lanka expecting $5 bn in loans from multilateral agencies

International Monetary Fund (IMF) chief Kristalina Georgieva said on Tuesday (December 13) that the international body is 'very likely' to downgrade China's growth forecast for this year and the next, reported AFP. Her comments have come as China faces increasing number of Covid cases as it eases restrictions after nearly three years.

China has begun easing Covid restrictions after enforcing its strict 'Zero-Covid policy' which had battered its economy in the firsr place. Now, the rising infections due to easing of restrictions " is going to create some difficulties over the next months" as well, Georgieva said.

"But it is likely that as China overcomes this in the second half of the year, there could be some improvement in growth prospects," she said.

The zero-Covid policy, characterized by snap lockdowns, international travel restrictions and mass testing, took a heavy toll on consumers and businesses, with demonstrations against the measures eventually erupting in major Chinese cities.

The IMF earlier warned that tough virus restrictions have been especially hard on China's residents.

In October this year, the IMF cut its growth projection for China to 3.2 per cent. This is the lowest growth forecast in decades. It is expected that growth will rise to 4.4 per cent next year.

But "very likely, we will be downgrading our growth projections for China, both for 2022 and for 2023," Georgieva said.

(With inputs from agencies)

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International Monetary Fund (IMF) chief Kristalina Georgieva said on Tuesday (December 13) that the international body is 'very likely' to downgrade China's growth forecast for this year and the next, reported AFP.

International Monetary Fund (IMF) chief Kristalina Georgieva said on Tuesday (December 13) that the international body is 'very likely' to downgrade China's growth forecast for this year and the next, reported AFP. Her comments have come as China faces increasing number of Covid cases as it eases restrictions after nearly three years. China has begun easing Covid restrictions after enforcing its strict 'Zero-Covid policy' which had battered its economy in the firsr place. Now, the rising infections due to easing of restrictions " is going to create some difficulties over the next months" as well, Georgieva said. "But it is likely that as China overcomes this in the second half of the year, there could be some improvement in growth prospects," she said. The zero-Covid policy, characterized by snap lockdowns, international travel restrictions and mass testing, took a heavy toll on consumers and businesses, with demonstrations against the measures eventually erupting in major Chinese cities. The IMF earlier warned that tough virus restrictions have been especially hard on China's residents. In October this year, the IMF cut its growth projection for China to 3.2 per cent. This is the lowest growth forecast in decades. It is expected that growth will rise to 4.4 per cent next year. But "very likely, we will be downgrading our growth projections for China, both for 2022 and for 2023," Georgieva said. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

IMF 'very likely' to downgrade growth forecast for China

As Ghana fights its worst economic crisis in decades, the International Monetary Fund announced on Tuesday that the two parties had reached an agreement on a $3 billion loan line. The West African nation has experienced a dramatic decrease in its cedi currency since the beginning of the year, as well as inflation of more than 40% and rising debt.

According to the IMF statement, the government of Ghana has committed to "a wide-ranging economic reform programme" that would restore stability and debt sustainability.

The IMF's board will ratify the three-year financing arrangement.

The situation prompted President Nana Akufo-administration Addo's to change course early this year and request assistance from the IMF after experts warned the nation ran the risk of missing debt payments.

In order to relieve a payment pressure, the administration has already announced a domestic debt exchange.

Also watch |&nbsp;South African Parliament to decide whether to proceed with Ramaphosa's impeachment

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Ghana, a major producer of cocoa and gold, also has oil and gas deposits, but its debt service costs have skyrocketed, and like the rest of sub-Saharan Africa, it has been severely impacted by the effects of the Covid epidemic and the Ukraine conflict.

(With inputs from agencies)

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As Ghana fights its worst economic crisis in decades, the International Monetary Fund announced on Tuesday that the two parties had reached an agreement on a $3 billion loan line.

As Ghana fights its worst economic crisis in decades, the International Monetary Fund announced on Tuesday that the two parties had reached an agreement on a $3 billion loan line. The West African nation has experienced a dramatic decrease in its cedi currency since the beginning of the year, as well as inflation of more than 40% and rising debt. According to the IMF statement, the government of Ghana has committed to "a wide-ranging economic reform programme" that would restore stability and debt sustainability. The IMF's board will ratify the three-year financing arrangement. The situation prompted President Nana Akufo-administration Addo's to change course early this year and request assistance from the IMF after experts warned the nation ran the risk of missing debt payments. In order to relieve a payment pressure, the administration has already announced a domestic debt exchange. Also watch | South African Parliament to decide whether to proceed with Ramaphosa's impeachment Ghana, a major producer of cocoa and gold, also has oil and gas deposits, but its debt service costs have skyrocketed, and like the rest of sub-Saharan Africa, it has been severely impacted by the effects of the Covid epidemic and the Ukraine conflict. (With inputs from agencies) WATCH WION LIVE HERE:

Ghana agrees on $3 bn deal with IMF as country fights its worst economic crisis in decades

The Chinese government decided to loosen its strict COVID-19 restrictions under the Zero Covid policy and the decision was lauded by global economic leaders on Friday. Both the International Monetary Fund (IMF) and the World Trade Organization (WTO) welcomed the change in stance and said that the lifting of restrictions will help the country and the global economy in the long run.

"We welcome very much the decisive actions taken by the Chinese authorities... to recalibrate the Covid policies so as to create a better impetus for the revival of growth in China," Kristalina Georgieva, the IMF chief, said at a press briefing according to Reuters.

Also read |&nbsp;<a href="https://www.wionews.com/world/russian-lawmakers-hail-bout-griner-prisoner-swap-as-putins-win-state-media-541528">Russian lawmakers hail Bout-Griner prisoner swap as Putin's 'win'</a>

Due to the COVID-19 pandemic and the ongoing conflict between Russia and Ukraine, the global economy as well as the supply chain suffered major setbacks. With China – one of the biggest economies in the world – also shutting down manufacturing units due to the rise of Covid cases, there was a dearth of stimulus to the global economy and wealth.

However, after the nationwide protests against the restrictions, the authorities in China relented and allowed people to isolate at home. It further said that people did not need negative test results for free movement.

Also read |&nbsp;<a href="https://www.wionews.com/world/iranian-forces-targeting-protesting-womens-faces-and-genitalia-say-medics-541484">Iranian forces targeting protesting women's faces and genitalia, say medics</a>

The effort to boost vaccination rates and anti-viral treatments "is very good for the Chinese people, but also important for Asia and the rest of the world", Georgieva added at the briefing.

"China's performance matters (not just) to China -- it matters to the world economy as well."

Secretary-General of the Organisation for Economic Co-operation and Development, Mathias Cormann, also hailed the impact that the lifting of restrictions will have on the economy.

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The Chinese government decided to loosen its strict COVID-19 restrictions under the Zero Covid policy and the decision was lauded by global economic leaders on Friday.

The Chinese government decided to loosen its strict COVID-19 restrictions under the Zero Covid policy and the decision was lauded by global economic leaders on Friday. Both the International Monetary Fund (IMF) and the World Trade Organization (WTO) welcomed the change in stance and said that the lifting of restrictions will help the country and the global economy in the long run. "We welcome very much the decisive actions taken by the Chinese authorities... to recalibrate the Covid policies so as to create a better impetus for the revival of growth in China," Kristalina Georgieva, the IMF chief, said at a press briefing according to Reuters. Also read | Russian lawmakers hail Bout-Griner prisoner swap as Putin's 'win' Due to the COVID-19 pandemic and the ongoing conflict between Russia and Ukraine, the global economy as well as the supply chain suffered major setbacks. With China – one of the biggest economies in the world – also shutting down manufacturing units due to the rise of Covid cases, there was a dearth of stimulus to the global economy and wealth. However, after the nationwide protests against the restrictions, the authorities in China relented and allowed people to isolate at home. It further said that people did not need negative test results for free movement. Also read | Iranian forces targeting protesting women's faces and genitalia, say medics The effort to boost vaccination rates and anti-viral treatments "is very good for the Chinese people, but also important for Asia and the rest of the world", Georgieva added at the briefing. "China's performance matters (not just) to China -- it matters to the world economy as well." Secretary-General of the Organisation for Economic Co-operation and Development, Mathias Cormann, also hailed the impact that the lifting of restrictions will have on the economy.

Global economic chiefs hail China’s decision of relaxing COVID-19 restrictions

The International Monetary Fund (IMF) on Wednesday said that China still has room to adjust its strict zero-Covid policy, pointing out that the nation's stringent policies have been especially hard on the people.

In an email statement to AFP a spokesperson for IMF, "Covid and Covid-related restrictions are hard on people... This has been the case everywhere, and even more so in China."

Watch |&nbsp;World Business Watch: China's factory, service activities shrink to 7 month low

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The organisation said that Chinese authorities have made policies more targeted, and "there is scope for further gradual, safe recalibration."

Three years into the pandemic, when many countries have eased covid containment measures like lockdowns, China still regularly deploys such measures, locking up entire neighbourhoods and cities to eradicate the virus. These strict measures come with a heavy toll on citizens and the nation's economy.

Also read |&nbsp;<a href="https://www.wionews.com/world/chinese-government-relaxes-covid-19-rules-in-several-districts-in-guangzhou-538833">Chinese government relaxes COVID-19 rules in several districts of Guangzhou</a>

IMF said that China's economy has partially recovered and an adjustment of its policy may help growth in 2023, while also supporting the global economy.

For a large part of this year, the Chinese major business hub has been under lockdown. This has not only impacted Beijing's economy but also the global markets, and supply chains.

Also read |&nbsp;<a href="https://www.wionews.com/world/3-years-of-covid-was-his-entire-life-in-china-child-dies-due-to-lockdown-rules-father-offered-hush-money-530653">'3 years of COVID was his entire life': In China, child dies due to lockdown rules, father offered hush money</a>

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Recently, following reports of deaths due to these lockdowns people have protested, raging across the nation in a "rare outpouring" of anger.&nbsp;A fire in a high-rise building in Xinjiang that killed ten people last week reportedly acted as a catalyst for these protests. Many have alleged that a partial lockdown on the building fatally delayed rescue operations and also obstructed escape routes.

(With inputs from agencies)

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The International Monetary Fund (IMF) on Wednesday said that China still has room to adjust its strict zero-Covid policy, pointing out that the nation's stringent policies have been especially hard on the people.

The International Monetary Fund (IMF) on Wednesday said that China still has room to adjust its strict zero-Covid policy, pointing out that the nation's stringent policies have been especially hard on the people. In an email statement to AFP a spokesperson for IMF, "Covid and Covid-related restrictions are hard on people... This has been the case everywhere, and even more so in China." Watch | World Business Watch: China's factory, service activities shrink to 7 month low The organisation said that Chinese authorities have made policies more targeted, and "there is scope for further gradual, safe recalibration." Three years into the pandemic, when many countries have eased covid containment measures like lockdowns, China still regularly deploys such measures, locking up entire neighbourhoods and cities to eradicate the virus. These strict measures come with a heavy toll on citizens and the nation's economy. Also read | Chinese government relaxes COVID-19 rules in several districts of Guangzhou IMF said that China's economy has partially recovered and an adjustment of its policy may help growth in 2023, while also supporting the global economy. For a large part of this year, the Chinese major business hub has been under lockdown. This has not only impacted Beijing's economy but also the global markets, and supply chains. Also read | '3 years of COVID was his entire life': In China, child dies due to lockdown rules, father offered hush money Recently, following reports of deaths due to these lockdowns people have protested, raging across the nation in a "rare outpouring" of anger. A fire in a high-rise building in Xinjiang that killed ten people last week reportedly acted as a catalyst for these protests. Many have alleged that a partial lockdown on the building fatally delayed rescue operations and also obstructed escape routes. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

China can adjust its strict zero-Covid policy, it's been hard on people, says IMF

The International Monetary Fund said on Sunday that the global economic outlook is even gloomier than projected last month. It cited a steady worsening in purchasing manager surveys in recent months

WION Business News | Global economic outlook getting `gloomier`, says IMF

International Monetary Fund (IMF) Managing Director Kristalina Georgieva in a recent interview said the US-China trade rivalry, which started during the Donald Trump reign posed a high risk to the global economy.

International Monetary Fund (IMF) Managing Director Kristalina Georgieva in a recent interview said the US-China trade rivalry, which started during the Donald Trump reign posed a high risk to the global economy. “We may be sleepwalking into a world that is poorer and less secure as a result,” said Georgieva. Citing her example of living through the cold war, Georgieva said, “I lived through the first Cold War on the other side of the Iron Curtain. And, yeah, it is quite cold out there. And to go in a second cold war for another generation is...very irresponsible.” While the US-China trade is still sizeable, hovering around the $600 billion mark, the two countries have been at loggerheads for a long time. Read more: US enforces export controls to restrict China's chip supply for hi-tech military applications What started with Trump as a 'trade war' has continued in one way or another with President Joe Biden in the White House. The last few months have been dominated by the 'semincoductor wars' between the two nations. Washington has imposed an export ban to restrict China's chip supply for hi-tech military applications. Georgieva said it was impossible to see a complete rupture in the relationship but added, “It is important to think through actions and what they may generate as counter actions carefully, because once you let the genie out of the bottle, it’s hard to put it back in.” WATCH | US-China battle over semiconductors × As reported by WION, in the aftermath of the export curbs, Chinese Foreign Minister Wang Yi had accused the US of harming its rights. “The US side introduced new export controls against China, restricting investments in China, seriously violating free-trade principles and seriously harming China’s legitimate rights and interests, which must be corrected.” Read more: Chinese foreign minister lashes out at Blinken during a phone call “The US side should stop its containment and suppression of China and not create new obstacles to bilateral relations,” it added. (With inputs from agencies) WATCH WION LIVE HERE:

US-China trade rivalry poses high-risk to global economy: IMF

Similar to many other Asian nations, Bangladesh's economy is also facing a sudden increase in cost of living, mainly due to the ongoing Ukraine conflict.&nbsp;

To help Bangladesh cope with soaring prices,&nbsp;the International Monetary Fund (IMF) on Wednesday announced $4.5 billion in assistance for the Asian country.

IMF team leader Rahul said, " Bangladesh's robust economic recovery from the pandemic has been interrupted by Russia's war in Ukraine, leading to a sharp widening of the current account deficit, the rapid decline of foreign exchange reserves, rising inflation and slowing growth."

<a href="https://www.wionews.com/south-asia/imran-khan-compares-himself-to-mujibur-rehman-bangladeshs-founding-father-530544">Also read |&nbsp;Imran Khan compares himself to Bangladesh's founding father Mujibur Rehman</a>

The 170 million people nation requested assistance earlier this year, followed by a $4.5 billion deal for its 'economic objectives.' As per the official stats, the country's inflation rate is near 10 per cent, however, many independent analysts claimed the rate to be easily around 20 per cent, AFP reported.&nbsp;&nbsp;

The IMF loan will mostly be used to bolster Bangladesh's foreign exchange reserves which drastically fell from $46 billion to $34 billion. The currency has lost nearly 25 per cent to the US dollar in the past few months.&nbsp;

<a href="https://www.wionews.com/south-asia/bangladesh-cyclone-sitrang-lashes-country-claiming-16-lives-528272">Also read |&nbsp;Bangladesh: Cyclone Sitrang lashes country claiming 24 lives</a>

Bangladesh is unable to buy fossil fuels due to currency depreciation. To preserve the existing supplies, PM Sheikh Hasina has announced to shut down diesel pants, and implemented long power outages for up to 13 hours a day. These outages have provoked protests. A recent police raid claimed the lives of three people and injured over 100 people.&nbsp;

By 2031, the country aims to move ahead of its designation as a 'Least Developed Country' and be counted among 'middle-income countries.'

Bangladesh will also advocate for major climate actions and look for more funding. Sri Lanka, another South Asian country falls under the category and has asked for IMF assistance because of the economic crisis the country has been facing.&nbsp;

(With inputs from agencies)

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Similar to many other Asian nations, Bangladesh's economy is also facing a sudden increase in cost of living, mainly due to the ongoing Ukraine conflict. To help Bangladesh cope with soaring prices, the International Monetary Fund (IMF) on Wednesday announced $4.

Similar to many other Asian nations, Bangladesh's economy is also facing a sudden increase in cost of living, mainly due to the ongoing Ukraine conflict. To help Bangladesh cope with soaring prices, the International Monetary Fund (IMF) on Wednesday announced $4.5 billion in assistance for the Asian country. IMF team leader Rahul said, " Bangladesh's robust economic recovery from the pandemic has been interrupted by Russia's war in Ukraine, leading to a sharp widening of the current account deficit, the rapid decline of foreign exchange reserves, rising inflation and slowing growth." Also read | Imran Khan compares himself to Bangladesh's founding father Mujibur Rehman The 170 million people nation requested assistance earlier this year, followed by a $4.5 billion deal for its 'economic objectives.' As per the official stats, the country's inflation rate is near 10 per cent, however, many independent analysts claimed the rate to be easily around 20 per cent, AFP reported. The IMF loan will mostly be used to bolster Bangladesh's foreign exchange reserves which drastically fell from $46 billion to $34 billion. The currency has lost nearly 25 per cent to the US dollar in the past few months. Also read | Bangladesh: Cyclone Sitrang lashes country claiming 24 lives Bangladesh is unable to buy fossil fuels due to currency depreciation. To preserve the existing supplies, PM Sheikh Hasina has announced to shut down diesel pants, and implemented long power outages for up to 13 hours a day. These outages have provoked protests. A recent police raid claimed the lives of three people and injured over 100 people. By 2031, the country aims to move ahead of its designation as a 'Least Developed Country' and be counted among 'middle-income countries.' Bangladesh will also advocate for major climate actions and look for more funding. Sri Lanka, another South Asian country falls under the category and has asked for IMF assistance because of the economic crisis the country has been facing. (With inputs from agencies) WATCH WION LIVE HERE

IMF announces $4.5 billion assistance to Bangladesh to combat rising inflation

The International Monetary Fund (IMF) cut Asia’s economic forecasts on Friday as global monetary tightening, rising inflation blamed on the war in Ukraine, and China’s sharp slowdown dampened the region’s recovery prospects.

IMF cuts Asia's economic forecasts & says China slowdown to drag on Asia growth

IMF has warned the Asian economies by looking at the major challenges faced by global economies especially Asia. IMF has cut Asia's economic forecast on global monetary tightening rising inflation and Ukraine war.

WION Business Watch: IMF cuts Asia's economic forecasts; 'China slowdown to drag on Asia's growth'

The IMF says that there is an increasing risk of a global recession. What kind of challenges will a global downturn bring for India?

Gravitas: The challenges before the Indian Economy

Ukrainian President Volodymyr Zelensky said that Russia used missiles and Iran-made drones to target civilians and energy infrastructure in a series of deadly strikes.

Ukraine PM: Ukraine receives additional emergency aid from IMF

The IMF has revised its economic projections for 2023. It forecasts a lower GDP but says a recession is not likely. However, it warns that 2023 will feel like a recession for many people. Priyanka Sharma tells you more.

Gravitas: IMF reduces 2023 GDP outlook

On Wednesday, the top International Monetary Fund (IMF) official during a press briefing described India’s implementation of a direct cash transfer scheme and other similar social welfare programmes as a “logistical marvel” given the sheer size of the country.&nbsp;

These remarks were made by IMF’s Deputy Director of the Fiscal Affairs Department, Paolo Mauro, who was responding to a question on the direct cash transfer programme, successfully implemented by the Indian government.&nbsp;

“From India, there is a lot to learn. There is a lot to learn from some other examples around the world. We have examples from pretty much every continent and every level of income. If I look at the case of India, it is actually quite impressive” said Mauro, according to media reports.&nbsp;

ALSO READ:&nbsp;<a href="https://www.wionews.com/south-asia/no-more-funding-from-india-to-sri-lanka-as-imf-talks-progress-sources-516652">No more funding from India to Sri Lanka as IMF talks progress: Sources</a>

He added, “In fact, just because of the sheer size of the country, it is a logistical marvel how these programmes that seek to help people who are at low-income levels reach literally hundreds of millions of people.” The IMF official was addressing a press conference on the sidelines of the annual meeting of the Boards of Governors of the International Monetary Fund and the World Bank Group (WBG).

According to sources, he also noted that there are several programmes specifically for women and other additional programmes that target farmers and the elderly. He added, “Perhaps the interesting part is that in these examples, there is a lot of technological innovation,” and highlighted the use of a unique identification system, the Aadhaar, in making the cash transfer scheme a success in India.&nbsp;

“But in other countries, also, there is greater use of sending money through mobile banking to people who actually do not have a whole lot of money, but they have a cell phone”, noted the IMF official.&nbsp;

ALSO READ:&nbsp;<a href="https://www.wionews.com/world/imf-cuts-2023-global-growth-to-27-india-set-to-be-one-of-fastest-growing-economies-524489">IMF cuts 2023 global growth to 2.7%, India set to be one of fastest-growing economies</a>

He added, “So being somewhat innovative in identifying people, in processing their applications for transfers through digital means, deploying funds through, again, mobile banking. This is something that countries can learn from each other. We also try here to be a little bit of a convening place where people can compare these types of experiences.”

On the other hand, Vitor Gaspar, IMF’s Director of the Fiscal Affairs Department, said that they are collaborating with India in this context, as it is “as one of the most inspiring examples of the application of technology to solve very complicated issues of targeting support to the people who need it most.”&nbsp;

According to reports, DBT (Direct Benefit Transfer) transfers benefits and subsidies of various social welfare schemes are directly credited to the beneficiary's bank account periodically, bypassing the need for an intermediary body. More than Rs 24.8 lakh crore have been transferred through DBT since 2013, indicated the government data. Additionally, over 90 lakh DBT payments are processed daily, said media reports, citing government data.&nbsp;

(With inputs from agencies) 
 
&nbsp;

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On Wednesday, the top International Monetary Fund (IMF) official during a press briefing described India’s implementation of a direct cash transfer scheme and other similar social welfare programmes as a “logistical marvel” given the sheer size of the country.

On Wednesday, the top International Monetary Fund (IMF) official during a press briefing described India’s implementation of a direct cash transfer scheme and other similar social welfare programmes as a “logistical marvel” given the sheer size of the country. These remarks were made by IMF’s Deputy Director of the Fiscal Affairs Department, Paolo Mauro, who was responding to a question on the direct cash transfer programme, successfully implemented by the Indian government. “From India, there is a lot to learn. There is a lot to learn from some other examples around the world. We have examples from pretty much every continent and every level of income. If I look at the case of India, it is actually quite impressive” said Mauro, according to media reports. ALSO READ: No more funding from India to Sri Lanka as IMF talks progress: Sources He added, “In fact, just because of the sheer size of the country, it is a logistical marvel how these programmes that seek to help people who are at low-income levels reach literally hundreds of millions of people.” The IMF official was addressing a press conference on the sidelines of the annual meeting of the Boards of Governors of the International Monetary Fund and the World Bank Group (WBG). According to sources, he also noted that there are several programmes specifically for women and other additional programmes that target farmers and the elderly. He added, “Perhaps the interesting part is that in these examples, there is a lot of technological innovation,” and highlighted the use of a unique identification system, the Aadhaar, in making the cash transfer scheme a success in India. “But in other countries, also, there is greater use of sending money through mobile banking to people who actually do not have a whole lot of money, but they have a cell phone”, noted the IMF official. ALSO READ: IMF cuts 2023 global growth to 2.7%, India set to be one of fastest-growing economies He added, “So being somewhat innovative in identifying people, in processing their applications for transfers through digital means, deploying funds through, again, mobile banking. This is something that countries can learn from each other. We also try here to be a little bit of a convening place where people can compare these types of experiences.” On the other hand, Vitor Gaspar, IMF’s Director of the Fiscal Affairs Department, said that they are collaborating with India in this context, as it is “as one of the most inspiring examples of the application of technology to solve very complicated issues of targeting support to the people who need it most.” According to reports, DBT (Direct Benefit Transfer) transfers benefits and subsidies of various social welfare schemes are directly credited to the beneficiary's bank account periodically, bypassing the need for an intermediary body. More than Rs 24.8 lakh crore have been transferred through DBT since 2013, indicated the government data. Additionally, over 90 lakh DBT payments are processed daily, said media reports, citing government data. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

‘A lot to learn’ from India: IMF praises direct cash transfer and other government schemes

The International Monetary Fund (IMF) said that the global economic growth is expected to slow down by almost 0.2 percentage points in comparison to its July forecast. According to the latest data, the global economy will grow by 2.7 percent in 2023 resulting in recession in some countries.

IMF cuts global growth forecast for 2023, warns ‘the worst is yet to come’

The International Monetary Fund (IMF) said on Tuesday that the global economic growth is expected to slow down by almost 0.2 percentage points in comparison to its July forecast. According to the latest data, the global economy will grow by 2.7 per cent in 2023 resulting in recession in some countries.&nbsp;&nbsp;

“The worst is yet to come, and for many people 2023 will feel like a recession,” the report said.&nbsp;

In the past year, the global economic growth has been severely affected by the COVID-19 pandemic as well as the Russian invasion of Ukraine. With the world facing acute food and fuel shortages, the IMF said that the latest prediction is the “the weakest growth profile since 2001”, according to Reuters.&nbsp;

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IMF Growth Forecast: 2023 
 
USA🇺🇸: 1% 
Germany🇩🇪: -0.3% 
France🇫🇷: 0.7% 
Italy🇮🇹: -0.2% 
Spain🇪🇸: 1.2% 
Japan🇯🇵: 1.6% 
UK🇬🇧: 0.3% 
Canada🇨🇦: 1.5% 
China🇨🇳: 4.4% 
India🇮🇳: 6.1% 
Russia🇷🇺: -2.3% 
Brazil🇧🇷: 1% 
Mexico🇲🇽: 1.2% 
KSA🇸🇦: 3.7% 
Nigeria🇳🇬: 3% 
RSA🇿🇦: 1.1%<a href="https://t.co/VBrRHOfbIE">https://t.co/VBrRHOfbIE</a> <a href="https://twitter.com/hashtag/WEO?src=hash&amp;ref_src=twsrc%5Etfw">#WEO</a> <a href="https://t.co/0TDJbgSuka">pic.twitter.com/0TDJbgSuka</a>
— IMF (@IMFNews) <a href="https://twitter.com/IMFNews/status/1579820463563603974?ref_src=twsrc%5Etfw">October 11, 2022</a></blockquote>
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The report also added the economic slowdown in China as one of the potential reasons behind the current financial crisis. With the Chinese government imposing tough restrictions on the citizens to stop the Covid infection from spreading, the economy has taken a massive hit in the past couple of years.&nbsp;

While major economies like the United States and China are expected to show extremely slow growth in 2023, the Indian economy is expected to grow by 6.1 per cent. If the trend holds true, India is currently enroute to becoming one of the fastest-growing economies in the world by the next year.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/g7-to-hold-crisis-talks-on-russias-bomb-assault-on-kyiv-524408" hreflang="en">G7 to hold crisis talks on Russia's bomb assault on Kyiv</a>

Back in July, the IMF said that India can grow by 7.4 per cent in the current financial year.&nbsp;

“For emerging markets and developing economies, the shocks of 2022 will re-open economic wounds that were only partially healed following the pandemic,” the report said.&nbsp;

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The International Monetary Fund (IMF) said on Tuesday that the global economic growth is expected to slow down by almost 0.2 percentage points in comparison to its July forecast.

The International Monetary Fund (IMF) said on Tuesday that the global economic growth is expected to slow down by almost 0.2 percentage points in comparison to its July forecast. According to the latest data, the global economy will grow by 2.7 per cent in 2023 resulting in recession in some countries. “The worst is yet to come, and for many people 2023 will feel like a recession,” the report said. In the past year, the global economic growth has been severely affected by the COVID-19 pandemic as well as the Russian invasion of Ukraine. With the world facing acute food and fuel shortages, the IMF said that the latest prediction is the “the weakest growth profile since 2001”, according to Reuters. IMF Growth Forecast: 2023 USA🇺🇸: 1% Germany🇩🇪: -0.3% France🇫🇷: 0.7% Italy🇮🇹: -0.2% Spain🇪🇸: 1.2% Japan🇯🇵: 1.6% UK🇬🇧: 0.3% Canada🇨🇦: 1.5% China🇨🇳: 4.4% India🇮🇳: 6.1% Russia🇷🇺: -2.3% Brazil🇧🇷: 1% Mexico🇲🇽: 1.2% KSA🇸🇦: 3.7% Nigeria🇳🇬: 3% RSA🇿🇦: 1.1%https://t.co/VBrRHOfbIE #WEO pic.twitter.com/0TDJbgSuka — IMF (@IMFNews) October 11, 2022 × The report also added the economic slowdown in China as one of the potential reasons behind the current financial crisis. With the Chinese government imposing tough restrictions on the citizens to stop the Covid infection from spreading, the economy has taken a massive hit in the past couple of years. While major economies like the United States and China are expected to show extremely slow growth in 2023, the Indian economy is expected to grow by 6.1 per cent. If the trend holds true, India is currently enroute to becoming one of the fastest-growing economies in the world by the next year. Also read | G7 to hold crisis talks on Russia's bomb assault on Kyiv Back in July, the IMF said that India can grow by 7.4 per cent in the current financial year. “For emerging markets and developing economies, the shocks of 2022 will re-open economic wounds that were only partially healed following the pandemic,” the report said.

IMF cuts 2023 global growth to 2.7%, India set to be one of fastest-growing economies

IMF chief Kristalina Georgieva urged global policymakers on Thursday to take concerted action to avoid a dangerous 'new normal'&nbsp;as the risks of a worldwide recession are driven ever higher by repeated economic shocks.

In a speech ahead of the fund's annual meetings next week, the IMF's managing director said it was critical to "stabilize the global economy by addressing the most immediate challenges" -- including rampant inflation.

Policymakers need to act together to "prevent this period of heightened fragility from becoming a dangerous 'new normal'," Georgieva said.

But she warned the process will be painful -- and that if central banks move too aggressively to tamp down price pressures, it could trigger a "prolonged" economic downturn.

Finance ministers and central bank governors from more than 180 nations will gather next week in Washington for the first fully in-person meeting of the International Monetary Fund and World Bank since 2019, prior to the Covid-19 pandemic.

Faced with the "darkening global outlook ... the risks of recession are rising," Georgieva said -- announcing that the crisis lender plans to once again downgrade its 2023 forecast for the world economy, in the forecasts due to be published next week for the annual meeting.

One-third of countries are expected to see at least two quarters of contraction, and "even when growth is positive, it will feel like a recession" because of rising prices eroding incomes, she said.

The fund in July slashed its growth forecast for this year to 3.2 percent, and for next year to 2.9 percent -- the third consecutive downgrade.

'Shock, after shock'

The meetings come at a difficult time for the global economy, with the pandemic largely under control, but soaring inflation and rising interest rates now threatening to reverberate around the globe and choke off nascent recoveries.

"In less than three years, we lived through shock, after shock, after shock," Georgieva said in her speech at Georgetown University.

Global supply snarls already were a challenge as demand surged following the pandemic slowdown, fueling inflation worldwide, and strains worsened in the wake of the Russian invasion of Ukraine -- which Georgieva called a "senseless war" -- sending food and food prices soaring.

"Far from being transitory, inflation has become more persistent," and acting before high prices become entrenched is a key challenge for policymakers, Georgieva said -- warning that "the cost of a policy misstep can be enormous".

"Not tightening enough would cause inflation to become de-anchored and entrenched," but moving "too much and too fast -- and doing so in a synchronized manner across countries -- could push many economies into prolonged recession," she said.

Despite the risks, central banks need to continue "act decisively."

"This is not easy, and it will not be without pain in the near term," she cautioned. "But the key is to avoid much greater and longer-lasting pain for everyone later on."

Debt distress

Georgieva stressed the need for fiscal policies to help the most vulnerable segments of society, but warned that efforts must be targeted "with a laser-sharp focus on lower-income households," to avoid acting against the current of monetary policy.

She cautioned against relying on price controls which are not affordable nor effective.

The pandemic forced many countries to take on more borrowing, and now many are already facing or at risk of debt distress amid rising interest rates. That "raises the risk of a widening debt crisis" which could further harm global growth.

To reduce the risk "large creditors such as China and private-sector creditors have a responsibility to act," she said, calling for "faster and more predictable" action on debt restructuring.

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IMF chief Kristalina Georgieva urged global policymakers on Thursday to take concerted action to avoid a dangerous 'new normal' as the risks of a worldwide recession are driven ever higher by repeated economic shocks.

IMF chief Kristalina Georgieva urged global policymakers on Thursday to take concerted action to avoid a dangerous 'new normal' as the risks of a worldwide recession are driven ever higher by repeated economic shocks. In a speech ahead of the fund's annual meetings next week, the IMF's managing director said it was critical to "stabilize the global economy by addressing the most immediate challenges" -- including rampant inflation. Policymakers need to act together to "prevent this period of heightened fragility from becoming a dangerous 'new normal'," Georgieva said. But she warned the process will be painful -- and that if central banks move too aggressively to tamp down price pressures, it could trigger a "prolonged" economic downturn. Finance ministers and central bank governors from more than 180 nations will gather next week in Washington for the first fully in-person meeting of the International Monetary Fund and World Bank since 2019, prior to the Covid-19 pandemic. Faced with the "darkening global outlook ... the risks of recession are rising," Georgieva said -- announcing that the crisis lender plans to once again downgrade its 2023 forecast for the world economy, in the forecasts due to be published next week for the annual meeting. One-third of countries are expected to see at least two quarters of contraction, and "even when growth is positive, it will feel like a recession" because of rising prices eroding incomes, she said. The fund in July slashed its growth forecast for this year to 3.2 percent, and for next year to 2.9 percent -- the third consecutive downgrade. 'Shock, after shock' The meetings come at a difficult time for the global economy, with the pandemic largely under control, but soaring inflation and rising interest rates now threatening to reverberate around the globe and choke off nascent recoveries. "In less than three years, we lived through shock, after shock, after shock," Georgieva said in her speech at Georgetown University. Global supply snarls already were a challenge as demand surged following the pandemic slowdown, fueling inflation worldwide, and strains worsened in the wake of the Russian invasion of Ukraine -- which Georgieva called a "senseless war" -- sending food and food prices soaring. "Far from being transitory, inflation has become more persistent," and acting before high prices become entrenched is a key challenge for policymakers, Georgieva said -- warning that "the cost of a policy misstep can be enormous". "Not tightening enough would cause inflation to become de-anchored and entrenched," but moving "too much and too fast -- and doing so in a synchronized manner across countries -- could push many economies into prolonged recession," she said. Despite the risks, central banks need to continue "act decisively." "This is not easy, and it will not be without pain in the near term," she cautioned. "But the key is to avoid much greater and longer-lasting pain for everyone later on." Debt distress Georgieva stressed the need for fiscal policies to help the most vulnerable segments of society, but warned that efforts must be targeted "with a laser-sharp focus on lower-income households," to avoid acting against the current of monetary policy. She cautioned against relying on price controls which are not affordable nor effective. The pandemic forced many countries to take on more borrowing, and now many are already facing or at risk of debt distress amid rising interest rates. That "raises the risk of a widening debt crisis" which could further harm global growth. To reduce the risk "large creditors such as China and private-sector creditors have a responsibility to act," she said, calling for "faster and more predictable" action on debt restructuring. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

IMF chief urges global policymakers for timely action as global recession risks rise

Global recession can be avoided if governments' fiscal policies were consistent with monetary policy tightening, the International Monetary Fund's managing director said on Monday.

World Business Watch: IMF chief Georgieva says global recession avoidable

After the UK unveiled its biggest tax package in 50 years, the IMF has issued a rare & stinging rebuke. It has asked UK to re-evaluate the tax cuts, calling them a threat to the 'cost of living' crisis. Priyanka Sharma explains.

Gravitas: IMF issues a rare & stinging rebuke to the UK

The British treasury has defended the country’s decision to announce big tax cuts in its latest mini budget after criticism from the International Monetary Fund (IMF). Following the budget presented by finance minister Kwasi Kwarteng, the pound fell to an all-time low against the United States dollar.&nbsp;

"We have acted at speed to protect households and businesses through this winter and the next, following the unprecedented energy price rise," the Treasury said according to Sky News.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/nord-stream-leaks-european-leaders-launch-investigation-into-sabotage-520391" hreflang="en">Nord Stream leaks: European leaders launch investigation into 'sabotage'</a>

"We are focused on growing the economy to raise living standards for everyone," it added.&nbsp;

The government has said that the reason behind the increase in the gas and electricity prices was the ongoing conflict in Ukraine. Downing Street also said that the measures were taken “for the long run”.&nbsp;

Earlier, The IMF said that it was not convinced with the latest measures announced by the UK.&nbsp;

"Given elevated inflation pressures in many countries, including the UK, we do not recommend large and untargeted fiscal packages at this juncture, as it is important that fiscal policy does not work at cross purposes to monetary policy," an IMF spokesperson said, reported Reuters.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/xi-jinping-appears-in-public-for-first-time-since-sco-summit-amid-rumours-520401">Xi Jinping appears in public for first time since SCO Summit</a>

"We are closely monitoring recent economic developments in the UK and are engaged with the authorities," the spokesperson added while speaking about the British economy.&nbsp;

Meanwhile, the Bank of England raised its interest rates from 1.75 to 2.25 per cent in a bid to control the growing inflation and said that it “will not hesitate” to increase it even further in the future.&nbsp;

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The British treasury has defended the country’s decision to announce big tax cuts in its latest mini budget after criticism from the International Monetary Fund (IMF).

The British treasury has defended the country’s decision to announce big tax cuts in its latest mini budget after criticism from the International Monetary Fund (IMF). Following the budget presented by finance minister Kwasi Kwarteng, the pound fell to an all-time low against the United States dollar. "We have acted at speed to protect households and businesses through this winter and the next, following the unprecedented energy price rise," the Treasury said according to Sky News. Also read | Nord Stream leaks: European leaders launch investigation into 'sabotage' "We are focused on growing the economy to raise living standards for everyone," it added. The government has said that the reason behind the increase in the gas and electricity prices was the ongoing conflict in Ukraine. Downing Street also said that the measures were taken “for the long run”. Earlier, The IMF said that it was not convinced with the latest measures announced by the UK. "Given elevated inflation pressures in many countries, including the UK, we do not recommend large and untargeted fiscal packages at this juncture, as it is important that fiscal policy does not work at cross purposes to monetary policy," an IMF spokesperson said, reported Reuters. Also read | Xi Jinping appears in public for first time since SCO Summit "We are closely monitoring recent economic developments in the UK and are engaged with the authorities," the spokesperson added while speaking about the British economy. Meanwhile, the Bank of England raised its interest rates from 1.75 to 2.25 per cent in a bid to control the growing inflation and said that it “will not hesitate” to increase it even further in the future.

UK Treasury justifies latest economic measures after sharp criticism from IMF

The International Monetary Fund (IMF) on Sunday said that it will work with the international community to support flood relief and reconstruction efforts in Pakistan following the devastating floods.&nbsp;

According to a statement from the IMF`s resident representative in the country, Esther Perez Ruiz, IMF announced to support Pakistan under the current programme agreed to between the two, the Dawn reported.&nbsp;

"We will work with others in the international community to support, under the current programme, the authorities` relief and reconstruction efforts, and especially their ongoing endeavour to assist those affected by the floods while ensuring sustainable policies and macroeconomic stability," the statement said.

The statement said that the IMF was "deeply saddened" by the devastating impact of the recent floods in Pakistan and extended its sympathies to the millions of flood victims, the Dawn reported.&nbsp;

Despite the support from Saudi Arabia and International Monetary Funds (IMF), Pakistan is on the verge of economic collapse with a lack of funds, and the recent floods and heavy monsoons in the country have dampened the hope of a quick revival from the economic crisis.&nbsp;

The political instability, deteriorating business environment and mismanagement of the economy have pushed the country into investment fatigue from the traditional partners exposing the country to economic risks as well as political uncertainty.Initially, there was hope for Pakistan, when on August 29, the Board of the International Monetary Fund completed the combined seventh and eighth reviews under the Extended Fund Facility (EFF) for Pakistan, allowing the authorities to draw the equivalent of SDR 894 million (USD 1.1 billion).

The initially estimated losses due to the natural disaster have accumulated in the range of USD 18 billion. Pakistan`s agriculture sector faces the worst blow as at least 18,000 sq km of agricultural land have been wiped out.&nbsp;

The agriculture growth might remain zero or slide into negative against the envisaged target of 3.9 per cent for the current financial year 2022-23.Nearly 80 districts of Pakistan have been worst hit by the floods. Thousands of people have been lodged in tents or are waiting for shelter under open skies along the main highway that leads to Hyderabad.&nbsp;

Either side of the highway could be seen inundated by floodwater for miles. In the wake of the increased economic losses and reduced GDP growth, the per capita income is projected to slow down. The government had envisaged a GDP growth rate of 5 per cent for the current fiscal year.The catastrophic floods displaced more than 33 million people and are estimated to have caused USD 30 billion of damage, adding to skyrocketing inflation and a financial crisis.&nbsp;&nbsp; &nbsp;`

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The International Monetary Fund (IMF) on Sunday said that it will work with the international community to support flood relief and reconstruction efforts in Pakistan following the devastating floods.

The International Monetary Fund (IMF) on Sunday said that it will work with the international community to support flood relief and reconstruction efforts in Pakistan following the devastating floods. According to a statement from the IMF`s resident representative in the country, Esther Perez Ruiz, IMF announced to support Pakistan under the current programme agreed to between the two, the Dawn reported. "We will work with others in the international community to support, under the current programme, the authorities` relief and reconstruction efforts, and especially their ongoing endeavour to assist those affected by the floods while ensuring sustainable policies and macroeconomic stability," the statement said. The statement said that the IMF was "deeply saddened" by the devastating impact of the recent floods in Pakistan and extended its sympathies to the millions of flood victims, the Dawn reported. Despite the support from Saudi Arabia and International Monetary Funds (IMF), Pakistan is on the verge of economic collapse with a lack of funds, and the recent floods and heavy monsoons in the country have dampened the hope of a quick revival from the economic crisis. The political instability, deteriorating business environment and mismanagement of the economy have pushed the country into investment fatigue from the traditional partners exposing the country to economic risks as well as political uncertainty.Initially, there was hope for Pakistan, when on August 29, the Board of the International Monetary Fund completed the combined seventh and eighth reviews under the Extended Fund Facility (EFF) for Pakistan, allowing the authorities to draw the equivalent of SDR 894 million (USD 1.1 billion). The initially estimated losses due to the natural disaster have accumulated in the range of USD 18 billion. Pakistan`s agriculture sector faces the worst blow as at least 18,000 sq km of agricultural land have been wiped out. The agriculture growth might remain zero or slide into negative against the envisaged target of 3.9 per cent for the current financial year 2022-23.Nearly 80 districts of Pakistan have been worst hit by the floods. Thousands of people have been lodged in tents or are waiting for shelter under open skies along the main highway that leads to Hyderabad. Either side of the highway could be seen inundated by floodwater for miles. In the wake of the increased economic losses and reduced GDP growth, the per capita income is projected to slow down. The government had envisaged a GDP growth rate of 5 per cent for the current fiscal year.The catastrophic floods displaced more than 33 million people and are estimated to have caused USD 30 billion of damage, adding to skyrocketing inflation and a financial crisis. ` You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

IMF to work with international community to support flood-ravaged Pakistan

The International Monetary Fund (IMF) on Tuesday announced that it is moving forward to increase the emergency funds for nations affected by rising food prices and shortages brought on by the Russia-Ukraine crisis, with nearly 20 to 30 countries in urgent need.

IMF Managing Director Kristalina Georgieva and board members are both quite positive and hopeful about the plan "food shock window" and hope to get it approved so that the funds can be distributed accordingly.

<a href="https://www.wionews.com/south-asia/imf-greenlights-revival-of-pakistan-loan-programme-511284">Also read |&nbsp;IMF greenlights revival of Pakistan loan programme</a>

The plan would enable the IMF to offer additional, unconditional emergency financing to severely affected countries by the food crisis brought on by global inflation, and Russia's invasion of Ukraine, Reuters reported.

She claimed that the plan would benefit low-income food-importing countries that have seen their expenses soar, or others like Ukraine, whose exports have been halted because of the invasion. She further predicted that approximately 50 nations would be eligible for the programme.

<a href="https://www.wionews.com/south-asia/bangladesh-seeks-bailout-package-from-imf-loan-as-huge-import-bill-takes-toll-on-economy-501612">Also read |&nbsp;Bangladesh seeks bailout package from IMF as huge import bill takes toll on economy</a>

As per a source familiar with the plan, the proposal discussed would temporarily raise the access limits and permit member countries to borrow up to 50 per cent of their IMF quota, with low-income countries having access to the Rapid Credit Facility.

The IMF has always been funding and helping nations with all the necessary funds and aid required.

The organsiation since the start of the pandemic has funded more than $268 billion to 93 countries, Gerry Rice, spokesman for the IMF, said. He further added that the fund had been given to 57 low-income countries with loans totaling $27 billion, and it's still urging its member countries for financial support.

(With inputs from agencies)

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The International Monetary Fund (IMF) on Tuesday announced that it is moving forward to increase the emergency funds for nations affected by rising food prices and shortages brought on by the Russia-Ukraine crisis, with nearly 20 to 30 countries in urgent need.

The International Monetary Fund (IMF) on Tuesday announced that it is moving forward to increase the emergency funds for nations affected by rising food prices and shortages brought on by the Russia-Ukraine crisis, with nearly 20 to 30 countries in urgent need. IMF Managing Director Kristalina Georgieva and board members are both quite positive and hopeful about the plan "food shock window" and hope to get it approved so that the funds can be distributed accordingly. Also read | IMF greenlights revival of Pakistan loan programme The plan would enable the IMF to offer additional, unconditional emergency financing to severely affected countries by the food crisis brought on by global inflation, and Russia's invasion of Ukraine, Reuters reported. She claimed that the plan would benefit low-income food-importing countries that have seen their expenses soar, or others like Ukraine, whose exports have been halted because of the invasion. She further predicted that approximately 50 nations would be eligible for the programme. Also read | Bangladesh seeks bailout package from IMF as huge import bill takes toll on economy As per a source familiar with the plan, the proposal discussed would temporarily raise the access limits and permit member countries to borrow up to 50 per cent of their IMF quota, with low-income countries having access to the Rapid Credit Facility. The IMF has always been funding and helping nations with all the necessary funds and aid required. The organsiation since the start of the pandemic has funded more than $268 billion to 93 countries, Gerry Rice, spokesman for the IMF, said. He further added that the fund had been given to 57 low-income countries with loans totaling $27 billion, and it's still urging its member countries for financial support. (With inputs from agencies) WATCH WION LIVE HERE

IMF confirms 'food shock window' plan to assist countries with food crisis

Sri Lanka is also witnessing an economic crisis. Top officials are in talks with the International Monetary Fund over a fresh $2.9 billion program. The two parties are trying to set out an ambitious primary surplus target of 2.3 percent of GDP by 2025 that will mean having to increase state revenue significantly.

Sri Lanka: Colombo continues talks with the IMF, fresh $2.9 bn programme in talks

India has overtaken the United Kingdom to become the fifth largest economy in the world, according to Bloomberg, which has cited GDP figures from the International Monetary Fund.

New Delhi pushed Britain to the sixth spot in the final three months of 2021 to become the fifth-biggest economy. The calculation is based on US dollars, with India extending its lead in the first quarter.

According to the Bloomberg report, the size of the Indian economy with regards to ‘nominal’ cash was $854.7 billion during the quarter through March on an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter. In contrast, the UK was at $814 billion.

The calculations were done using the IMF database and historic exchange rates on the Bloomberg terminal.

The latest report reflects the economic trajectory these two countries have taken in recent months.

While UK is witnessing its worst cost-of-living crisis, soaring inflation—the highest in four decades—and a potential recession that is expected to last well into 2024, according to the Bank of England, the Indian economy, on the other hand, is forecast to grow more than 7 per cent this year.

“A world-beating rebound in Indian stocks this quarter has just seen their weighting rise to the second spot in the MSCI Emerging Markets Index, trailing only China’s," the Bloomberg report said.

Moreover, the IMF's forecasts show India pegged to overtake the UK in dollar terms on an annual basis this year, putting the Asian powerhouse behind just the US, China, Japan and Germany.&nbsp;

About a decade ago, India was ranked the world’s 11th largest economy, while the UK used to remain at the fifth spot.

The latest economic performance comes as a major blow to the ruling Conservative party, which is in the midst of leadership change following the resignation of Boris Johnson.

The Tory members will pick Johnson's successor on Monday, with reports indicating a comfortable win for foreign secretary Liz Truss over former chancellor Rishi Sunak.

(With inputs from agencies)

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India has overtaken the United Kingdom to become the fifth largest economy in the world, according to Bloomberg, which has cited GDP figures from the International Monetary Fund.

India has overtaken the United Kingdom to become the fifth largest economy in the world, according to Bloomberg, which has cited GDP figures from the International Monetary Fund. New Delhi pushed Britain to the sixth spot in the final three months of 2021 to become the fifth-biggest economy. The calculation is based on US dollars, with India extending its lead in the first quarter. According to the Bloomberg report, the size of the Indian economy with regards to ‘nominal’ cash was $854.7 billion during the quarter through March on an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter. In contrast, the UK was at $814 billion. The calculations were done using the IMF database and historic exchange rates on the Bloomberg terminal. The latest report reflects the economic trajectory these two countries have taken in recent months. While UK is witnessing its worst cost-of-living crisis, soaring inflation—the highest in four decades—and a potential recession that is expected to last well into 2024, according to the Bank of England, the Indian economy, on the other hand, is forecast to grow more than 7 per cent this year. “A world-beating rebound in Indian stocks this quarter has just seen their weighting rise to the second spot in the MSCI Emerging Markets Index, trailing only China’s," the Bloomberg report said. Moreover, the IMF's forecasts show India pegged to overtake the UK in dollar terms on an annual basis this year, putting the Asian powerhouse behind just the US, China, Japan and Germany. About a decade ago, India was ranked the world’s 11th largest economy, while the UK used to remain at the fifth spot. The latest economic performance comes as a major blow to the ruling Conservative party, which is in the midst of leadership change following the resignation of Boris Johnson. The Tory members will pick Johnson's successor on Monday, with reports indicating a comfortable win for foreign secretary Liz Truss over former chancellor Rishi Sunak. (With inputs from agencies) WATCH WION LIVE HERE

India overtakes UK to become world’s fifth largest economy

According to data from the International Monetary Fund, India has now reportedly overtaken the United Kingdom to become the 5th largest economy in the world. IMF has also predicted that India could beat Germany to the 4th place by the year 2027.

Indian economy surpasses UK's, beats GDP in nominal cash terms

The International Monetary Fund (IMF)&nbsp;announced a $2.9 billion bailout for Sri Lanka on Thursday as the country suffers from its worst economic crisis since gaining independence in 1948.&nbsp;

Earlier, Sri Lanka had sought up to $3 billion from the IMF, according to Reuters.&nbsp;

The decision was taken after prolonged talks between an IMF team and the Sri Lankan government headed by Ranil Wickremesinghe and treasury secretary Mahinda Siriwardana.

Also read |&nbsp;<a href="https://www.wionews.com/world/serious-human-rights-violations-committed-in-chinas-xinjiang-un-human-rights-chief-511904">Human rights violations committed in China's Xinjiang: UN human rights chief</a>

The official statement released by the IMF&nbsp;said that they have reached a staff-level agreement to support the Sri Lankan economy and the bailout will be spread over four years.&nbsp;

The IMF team, comprising Peter Breuer and Masahiro Nozaki, said that the bailout loan&nbsp;is aimed at improving Sri Lanka’s debt sustainability and unlocking the country’s growth potential.&nbsp;

“The Sri Lankan authorities and the IMF team have reached a staff-level agreement to support the authorities’ economic adjustment and reform policies with a new 48-month Extended Fund Facility (EFF) with a requested access of about SDR 2.2 billion (equivalent to US$2.9 billion).”&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/donald-trumps-lawyers-say-discover-of-classified-records-in-fbi-raid-no-cause-for-alarm-511927" hreflang="en">Donald Trump's lawyers say the discovery of classified records in FBI raid ‘no cause for alarm’</a>

“The new EFF arrangement will support Sri Lanka’s programme to restore macroeconomic stability and debt sustainability, while safeguarding financial stability, reducing corruption vulnerabilities and unlocking Sri Lanka’s growth potential,”&nbsp;the IMF statement read.

Sri Lanka, which is currently facing the worst inflation in its history, also went through a lot of political turmoil due to the crisis. The food and fuel shortages caused a massive uproar among the public and constant protests resulted in the resignation of former president Gotabaya Rajapaksa.&nbsp;

(With inputs from agencies)

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The International Monetary Fund (IMF) announced a $2.9 billion bailout for Sri Lanka on Thursday as the country suffers from its worst economic crisis since gaining independence in 1948.

The International Monetary Fund (IMF) announced a $2.9 billion bailout for Sri Lanka on Thursday as the country suffers from its worst economic crisis since gaining independence in 1948. Earlier, Sri Lanka had sought up to $3 billion from the IMF, according to Reuters. The decision was taken after prolonged talks between an IMF team and the Sri Lankan government headed by Ranil Wickremesinghe and treasury secretary Mahinda Siriwardana. Also read | Human rights violations committed in China's Xinjiang: UN human rights chief The official statement released by the IMF said that they have reached a staff-level agreement to support the Sri Lankan economy and the bailout will be spread over four years. The IMF team, comprising Peter Breuer and Masahiro Nozaki, said that the bailout loan is aimed at improving Sri Lanka’s debt sustainability and unlocking the country’s growth potential. “The Sri Lankan authorities and the IMF team have reached a staff-level agreement to support the authorities’ economic adjustment and reform policies with a new 48-month Extended Fund Facility (EFF) with a requested access of about SDR 2.2 billion (equivalent to US$2.9 billion).” Also read | Donald Trump's lawyers say the discovery of classified records in FBI raid ‘no cause for alarm’ “The new EFF arrangement will support Sri Lanka’s programme to restore macroeconomic stability and debt sustainability, while safeguarding financial stability, reducing corruption vulnerabilities and unlocking Sri Lanka’s growth potential,” the IMF statement read. Sri Lanka, which is currently facing the worst inflation in its history, also went through a lot of political turmoil due to the crisis. The food and fuel shortages caused a massive uproar among the public and constant protests resulted in the resignation of former president Gotabaya Rajapaksa. (With inputs from agencies)

Sri Lanka and IMF reach staff-level agreement for $2.9 billion bailout loan

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