<a href="http://www.wionews.com/business-&-economy/walmart-buying-77-stake-in-flipkart-for-16-billion-135737">Walmart buying 77% stake in Flipkart for $16 billion</a>

Walmart Inc has agreed to pay $16 billion for a roughly 77 per cent stake in Indian online shopping site Flipkart, the US retailer's biggest foreign investment as it battles rival Amazon.com Inc in one of the world's biggest emerging markets.

The deal, capping almost two years of talks, will help the Bentonville, Arkansas-based retailer fortify and boost market share against Amazon.com, which reportedly had tried to make a competing offer for a stake.

<a href="http://www.wionews.com/business-&-economy/india-to-grow-at-74-in-2018-78-in-2019-imf-135754">India to grow at 7.4% in 2018, says IMF</a>

The Indian economy is expected to grow at 7.4 per cent in the current fiscal and accelerate further to 7.8 per cent as it recovers from the impact of demonetisation and GST roll out, IMF said today.

Asia continues to be the main engine of the world's economy, accounting for more than 60 per cent of global growth, three-quarters of which comes from China and India alone, as per IMF's Regional Economic Outlook: Asia and Pacific (REO).

<a href="http://www.wionews.com/world/irans-khamenei-says-will-quit-nuke-deal-without-european-guarantees-135725">Iran supreme leader Khamenei says will quit nuclear deal without European guarantees</a>

Iran's supreme leader Ayatollah Ali Khamenei said Wednesday that Tehran would quit the landmark 2015 nuclear deal unless European signatories offered solid guarantees that trade relations would continue after the US withdrawal.

Addressing Iran's government in a televised speech, Khamenei said: "We hear that you want to continue the nuclear deal with the three European countries. I don't have confidence in these three countries."

<a href="http://www.wionews.com/india-news/chinas-xi-is-worlds-most-powerful-person-modi-is-9th-forbes-135739">China's Xi is world's most powerful person, Modi is 9th: Forbes</a>

Prime Minister Narendra Modi has been ranked among the top 10 most powerful people in the world by Forbes in a list that has been topped for the first time ever by Chinese President Xi Jinping, who dethroned Russian President Vladimir Putin as the most influential person on the planet.&nbsp;

Modi ranks 9th on the Forbes 2018 list of 75 of the World's Most Powerful People who make the world turn.

<a href="http://www.wionews.com/world/pompeo-returning-from-north-korea-with-three-us-detainees-trump-135759">Pompeo returning from North Korea with three US detainees: Trump</a>

US President Donald Trump said on Wednesday that three Americans detained by North Korea have been released and are on their way home with Secretary of State Mike Pompeo.

"I am pleased to inform you that Secretary of State Mike Pompeo is in the air and on his way back from North Korea with the 3 wonderful gentlemen that everyone is looking so forward to meeting. They seem to be in good health," Trump wrote in a post on Twitter.

Walmart buying 77% stake in Flipkart for $16 billion Walmart Inc has agreed to pay $16 billion for a roughly 77 per cent stake in Indian online shopping site Flipkart, the US retailer's biggest foreign investment as it battles rival Amazon.com Inc in one of the world's biggest emerging markets. The deal, capping almost two years of talks, will help the Bentonville, Arkansas-based retailer fortify and boost market share against Amazon.com, which reportedly had tried to make a competing offer for a stake. India to grow at 7.4% in 2018, says IMF The Indian economy is expected to grow at 7.4 per cent in the current fiscal and accelerate further to 7.8 per cent as it recovers from the impact of demonetisation and GST roll out, IMF said today. Asia continues to be the main engine of the world's economy, accounting for more than 60 per cent of global growth, three-quarters of which comes from China and India alone, as per IMF's Regional Economic Outlook: Asia and Pacific (REO). Iran supreme leader Khamenei says will quit nuclear deal without European guarantees Iran's supreme leader Ayatollah Ali Khamenei said Wednesday that Tehran would quit the landmark 2015 nuclear deal unless European signatories offered solid guarantees that trade relations would continue after the US withdrawal. Addressing Iran's government in a televised speech, Khamenei said: "We hear that you want to continue the nuclear deal with the three European countries. I don't have confidence in these three countries." China's Xi is world's most powerful person, Modi is 9th: Forbes Prime Minister Narendra Modi has been ranked among the top 10 most powerful people in the world by Forbes in a list that has been topped for the first time ever by Chinese President Xi Jinping, who dethroned Russian President Vladimir Putin as the most influential person on the planet. Modi ranks 9th on the Forbes 2018 list of 75 of the World's Most Powerful People who make the world turn. Pompeo returning from North Korea with three US detainees: Trump US President Donald Trump said on Wednesday that three Americans detained by North Korea have been released and are on their way home with Secretary of State Mike Pompeo. "I am pleased to inform you that Secretary of State Mike Pompeo is in the air and on his way back from North Korea with the 3 wonderful gentlemen that everyone is looking so forward to meeting. They seem to be in good health," Trump wrote in a post on Twitter.

News brief: Big stories of the day

The Indian economy is expected to grow at 7.4 per cent in the current fiscal and accelerate further to 7.8 per cent as it recovers from the impact of demonetisation and GST roll out, IMF said today.

Asia continues to be the main engine of the world's economy, accounting for more than 60 per cent of global growth, three-quarters of which comes from China and India alone, as per IMF's Regional Economic Outlook: Asia and Pacific (REO).

"But there are risks and challenges ahead, including from a tightening of global financial conditions, a shift toward inward-looking policies, and ? over the longer run ? population aging, slowing productivity growth, and the rise of the digital economy," it said.

Also read:&nbsp;<a href="http://www.wionews.com/south-asia/why-is-indias-growth-not-creating-more-jobs-16771">Why is India's growth not creating more jobs?</a>

Asia is expected to grow at 5.6 per cent this year and next, it said, adding that the outlook is supported by strong global demand, as well as still accommodative policies and financial conditions.

"In India, growth is forecast to rebound to 7.4 percent in FY 2018/19 as the economy recovers from disruptions related to the currency exchange initiative and the rollout of the new Goods and Services Tax," it said.

China, it said, is projected to grow at 6.6 per cent in the current year which will moderate to 6.4 per cent next year.

Noting that present rates of inflation in Asia are some of the lowest in decades, it said, it has seen some upward movement since September 2017 on the back of rising oil prices.

"But core inflation ? which excludes food and energy ? remains low and below target in many economies. In 2017, headline inflation on average was 0.6 percent lower than target in Asian advanced economies, and 0.8 percent under target in Asian emerging market economies," it said.

The latest report explores why inflation has been so low. And it finds that first that temporary global factors, including commodity prices and imported inflation, have been key drivers of low inflation.&nbsp; 
But these factors could reverse, and inflation could rise.

According to the report, inflation has become more backward-looking, meaning that past inflation drives current inflation more than future expectations. This suggests that if inflation rises, it may persist.

"Further, there is some evidence that the sensitivity of inflation to economic slack has decreased (i.E., the Phillips curve has flattened), suggesting that if inflation rises, there may be a large hit to output when reducing it," it said.

All of these mean that central banks should watch out closely for signs of inflation pressure now and stand ready to respond.&nbsp;

India's growth rate is expected to increase to 7.8% in 2019, the IMF said. China on the other is expected to grow at 6.6% in 2018 and 6.4% next year

The Indian economy is expected to grow at 7.4 per cent in the current fiscal and accelerate further to 7.8 per cent as it recovers from the impact of demonetisation and GST roll out, IMF said today. Asia continues to be the main engine of the world's economy, accounting for more than 60 per cent of global growth, three-quarters of which comes from China and India alone, as per IMF's Regional Economic Outlook: Asia and Pacific (REO). "But there are risks and challenges ahead, including from a tightening of global financial conditions, a shift toward inward-looking policies, and ? over the longer run ? population aging, slowing productivity growth, and the rise of the digital economy," it said. Also read: Why is India's growth not creating more jobs? Asia is expected to grow at 5.6 per cent this year and next, it said, adding that the outlook is supported by strong global demand, as well as still accommodative policies and financial conditions. "In India, growth is forecast to rebound to 7.4 percent in FY 2018/19 as the economy recovers from disruptions related to the currency exchange initiative and the rollout of the new Goods and Services Tax," it said. China, it said, is projected to grow at 6.6 per cent in the current year which will moderate to 6.4 per cent next year. Noting that present rates of inflation in Asia are some of the lowest in decades, it said, it has seen some upward movement since September 2017 on the back of rising oil prices. "But core inflation ? which excludes food and energy ? remains low and below target in many economies. In 2017, headline inflation on average was 0.6 percent lower than target in Asian advanced economies, and 0.8 percent under target in Asian emerging market economies," it said. The latest report explores why inflation has been so low. And it finds that first that temporary global factors, including commodity prices and imported inflation, have been key drivers of low inflation. But these factors could reverse, and inflation could rise. According to the report, inflation has become more backward-looking, meaning that past inflation drives current inflation more than future expectations. This suggests that if inflation rises, it may persist. "Further, there is some evidence that the sensitivity of inflation to economic slack has decreased (i.E., the Phillips curve has flattened), suggesting that if inflation rises, there may be a large hit to output when reducing it," it said. All of these mean that central banks should watch out closely for signs of inflation pressure now and stand ready to respond.

India to grow at 7.4% in 2018, says IMF

According to reports, former RBI Governor, Raghuram Rajan, has been listed as one of the possible contenders for a top job at the Bank of England (BoE).

According to UK-based Financial Times, UK Chancellor and Exchequer Philip Hammond has started the process of selecting the next Governor of the Bank of England. If selected, Rajan will replace the current Governor, Mark Carney, next year.

According to the report, Mr Hammond's has shown an interest in looking abroad for Carney's successor as the UK prepares for Brexit.
<iframe width="560" height="315" src="https://www.youtube.com/embed/VQ_YYATuvbg" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen></iframe>
Rajan currently teaches Finance at the University of Chicago, Booth School of Business. He served as the RBI Governor for three years, September 2013 to 2016.

Rajan was also the youngest Chief Economist and Director of Research at the International Monetary Fund.

Indian-origin Baroness Shriti Vadera could also be a candidate for the post.&nbsp; 
&nbsp;

Indian-origin Baroness Shriti Vadera could also be a candidate for the post

According to reports, former RBI Governor, Raghuram Rajan, has been listed as one of the possible contenders for a top job at the Bank of England (BoE). According to UK-based Financial Times, UK Chancellor and Exchequer Philip Hammond has started the process of selecting the next Governor of the Bank of England. If selected, Rajan will replace the current Governor, Mark Carney, next year. According to the report, Mr Hammond's has shown an interest in looking abroad for Carney's successor as the UK prepares for Brexit. Rajan currently teaches Finance at the University of Chicago, Booth School of Business. He served as the RBI Governor for three years, September 2013 to 2016. Rajan was also the youngest Chief Economist and Director of Research at the International Monetary Fund. Indian-origin Baroness Shriti Vadera could also be a candidate for the post.

Raghuram Rajan could be next Bank of England Governor

The International Monetary Fund has said it wants continued momentum in India's growth and structural reforms despite the election period.

A number of elections are scheduled to be held in India within the next one year with assembly polls in Karnataka, Mizoram, Chattisgarh, Madhya Pradesh and Rajasthan as well as the 2019 Lok Sabha election.

"We are not saying that India's structural reform speed will slow down because of elections. What we are saying is that the growth momentum and the structural reform momentum should continue despite the election period," said Changyong Rhee, Director of the Asia and Pacific Department at the IMF.

India is projected to grow at 7.4 per cent in the fiscal year 2018-2019 as the economy recovers from temporary destruction due to currency exchange initiatives and the roll out of the new goods and services tax, Rhee said Thursday.

Ken Kang, Deputy Director, at the IMF Asia and Pacific Department said the implementation of the GST was "a major reform" of the Indian tax system.&nbsp

"In recent years, India has made impressive progress in reforms.. It (GST) will enhance the efficiency of intra-Indian movement of goods and services, help create a common national market as well as help boost jobs and growth," said Kang.

He said India's introduction of flexible inflation targeting and of a statutory monetary policy which has helped strengthen the monetary policy framework was another big achievement.&nbsp

"The government has recently announced a major recapitalisation plan for the public-sector banks in order to accelerate the work out of non-performing loans, as well as made some important legal improvements through a new insolvency and bankruptcy law," said Kang.

"The IMF hopes that the reform momentum would continue," Kang added.&nbsp

Looking ahead, said Kang, India needed to focus on labour market reforms with a focus on increasing formal female labour participation, to improve the business environment, and reduce complex regulations, but also to address supply bottlenecks, particularly in the agricultural sector and distribution networks.

Responding to a question, Kang said that the IMF expects India's role in the region to expand.

"India does have room to expand its export orientation and to reduce further trade and non-trade barriers. The statutory tariff rate in India is relatively high at about 15 per cent and higher than those in the rest of the region. So there is room to do more on trade reforms," he said.

A number of elections are scheduled to be held in India within the next one year with assembly polls in Karnataka, Mizoram, Chattisgarh, Madhya Pradesh and Rajasthan as well as the 2019 Lok Sabha election

The International Monetary Fund has said it wants continued momentum in India's growth and structural reforms despite the election period. A number of elections are scheduled to be held in India within the next one year with assembly polls in Karnataka, Mizoram, Chattisgarh, Madhya Pradesh and Rajasthan as well as the 2019 Lok Sabha election. "We are not saying that India's structural reform speed will slow down because of elections. What we are saying is that the growth momentum and the structural reform momentum should continue despite the election period," said Changyong Rhee, Director of the Asia and Pacific Department at the IMF. India is projected to grow at 7.4 per cent in the fiscal year 2018-2019 as the economy recovers from temporary destruction due to currency exchange initiatives and the roll out of the new goods and services tax, Rhee said Thursday. Ken Kang, Deputy Director, at the IMF Asia and Pacific Department said the implementation of the GST was "a major reform" of the Indian tax system. "In recent years, India has made impressive progress in reforms.. It (GST) will enhance the efficiency of intra-Indian movement of goods and services, help create a common national market as well as help boost jobs and growth," said Kang. He said India's introduction of flexible inflation targeting and of a statutory monetary policy which has helped strengthen the monetary policy framework was another big achievement. "The government has recently announced a major recapitalisation plan for the public-sector banks in order to accelerate the work out of non-performing loans, as well as made some important legal improvements through a new insolvency and bankruptcy law," said Kang. "The IMF hopes that the reform momentum would continue," Kang added. Looking ahead, said Kang, India needed to focus on labour market reforms with a focus on increasing formal female labour participation, to improve the business environment, and reduce complex regulations, but also to address supply bottlenecks, particularly in the agricultural sector and distribution networks. Responding to a question, Kang said that the IMF expects India's role in the region to expand. "India does have room to expand its export orientation and to reduce further trade and non-trade barriers. The statutory tariff rate in India is relatively high at about 15 per cent and higher than those in the rest of the region. So there is room to do more on trade reforms," he said.

India's growth momentum must continue despite elections: IMF

The reforms carried out by India has been bearing fruits and benefiting people, making a strong case for more steps, a top IMF official has said.

The implementation of the goods and services tax (GST), despite a bumpy road, is going to help secure the solidity of foundation of public finances, David Lipton, the International Monetary Fund (IMF)'s First Deputy Managing Director David Lipton, told PTI.

The recent steps taken to deal with the accumulated problems in banks are important ones, Lipton said, as he identified digital ID technology and other structural reforms important moves towards inclusive growth and making India an economic powerhouse.

"There's certainly more to be done but India is certainly seeing benefits from what it has done," he said on the sidelines of the Spring meeting of the IMF and the World Bank.

"India's reforms have been bearing fruits and we see that in growth performance. (India's) growth last year was 6.7 per cent. We're now projecting 7.4 this fiscal year and 7.8 the following (year). That's a very healthy acceleration and it really means for a country that is huge, adds up to an awful lot of economic activity.

"India's goal is to have sustained growth and to have a growth that boosts the living standards very broadly across the population. The reforms that have been carried out so far have had benefits and make a very good case for carrying forward with further reforms," Lipton said.

A country of India's size has to be very careful to keep public finances under control because any interruption of economic activity that comes from fiscal difficulties would be a setback, he said.

Strengthening the foundation of fiscal finances with the GST is one reform that stands out, Lipton said.

Asked if these reforms have been inclusive enough, Lipton said the eco-system being built around digital ID technology offers a big help in this regard.

The problem of inclusion in India is particularly a difficult one given the size of the country and the remoteness of much of the population as well as the complexity of some very overburdened urban areas, he said.

"There's been progress, but I think that this is a challenge that has been not solved yet and may not be solved for a while. But what makes sense is to carry on.

"I hope that in India's case, new technologies, some of which are already being applied can help overcome remoteness and can promote inclusivity, whether it's retina ID numbers system and the architecture of finance and commerce that's going to be built around that or some of the new fintech innovations that allow people to do commerce or banking, whether it's savings and earning on their savings or borrowing may be useful for the creation and building businesses through new technologies," Lipton said.

The Indian government is effectively looking at how technologies can lead to better efficiency and less waste and corruption in government interactions with the people, whether it's in spending and benefits or the collection of taxes, the senior IMF official said.

"So, I think in a big country, technology can be a way to leapfrog the more old-fashioned ways in building connectivity that leads to inclusion in the country," he said.

Asked about the Aadhaar Card technology, Lipton said it is relatively new and seems to have many advantages.

"It surely has huge promises and could help overcome remoteness and promote inclusion," he said.

There certainly are possible drawbacks, he noted.

"From the beginning, it's been clear that issues of privacy and data security are going to arise when you use a technology like this. And it'll be the societies' job to figure out the do's and don'ts of that," he said.

"I hope it (India's progress) will show in poverty reduction statistics and eventually in a measurement of metrics of inclusion.

"I've said there's more to be done. There are further reforms both in terms of consolidating the budget situation to ensure that there's never an incident of doubt about fiscal finances in terms of making the banking system more competitive and dealing with the legacy problems of NPAs (non- performing assets)," he said.

The important job is not just to recapitalise, but to change the governance and change the competitiveness so that banks serve as a positive force, allocating credit well and being a driving force in the economy, he said.

Asked about IMF Managing Director Christine Lagarde's remarks that she does not expect any major economic reforms in an election year, Lipton said: "It's always difficult to make policy during election years.

"We certainly hope that there can continue to be a progress, but it's really the judgement of the politicians, the government about what can be done when".

"If policies are managed well and reforms are supportive of inclusive growth, India's economy could become a powerhouse economy. It is already, I think the 10th largest, but with the population and the growth rate there's more potential.

"The challenges of getting from here to there are very substantial. India needs a process of growth and development. And development means both economic and social development and more inclusion. We do think the gender gap in involving women, in the economy in a way that their full potential can contribute to India's economic growth is very important objective," Lipton added.

The implementation of the goods and services tax (GST), despite a bumpy road, is going to help secure the solidity of foundation of public finances, David Lipton, the International Monetary Fund (IMF)'s First Deputy Managing Director David Lipton said

The reforms carried out by India has been bearing fruits and benefiting people, making a strong case for more steps, a top IMF official has said. The implementation of the goods and services tax (GST), despite a bumpy road, is going to help secure the solidity of foundation of public finances, David Lipton, the International Monetary Fund (IMF)'s First Deputy Managing Director David Lipton, told PTI. The recent steps taken to deal with the accumulated problems in banks are important ones, Lipton said, as he identified digital ID technology and other structural reforms important moves towards inclusive growth and making India an economic powerhouse. "There's certainly more to be done but India is certainly seeing benefits from what it has done," he said on the sidelines of the Spring meeting of the IMF and the World Bank. "India's reforms have been bearing fruits and we see that in growth performance. (India's) growth last year was 6.7 per cent. We're now projecting 7.4 this fiscal year and 7.8 the following (year). That's a very healthy acceleration and it really means for a country that is huge, adds up to an awful lot of economic activity. "India's goal is to have sustained growth and to have a growth that boosts the living standards very broadly across the population. The reforms that have been carried out so far have had benefits and make a very good case for carrying forward with further reforms," Lipton said. A country of India's size has to be very careful to keep public finances under control because any interruption of economic activity that comes from fiscal difficulties would be a setback, he said. Strengthening the foundation of fiscal finances with the GST is one reform that stands out, Lipton said. Asked if these reforms have been inclusive enough, Lipton said the eco-system being built around digital ID technology offers a big help in this regard. The problem of inclusion in India is particularly a difficult one given the size of the country and the remoteness of much of the population as well as the complexity of some very overburdened urban areas, he said. "There's been progress, but I think that this is a challenge that has been not solved yet and may not be solved for a while. But what makes sense is to carry on. "I hope that in India's case, new technologies, some of which are already being applied can help overcome remoteness and can promote inclusivity, whether it's retina ID numbers system and the architecture of finance and commerce that's going to be built around that or some of the new fintech innovations that allow people to do commerce or banking, whether it's savings and earning on their savings or borrowing may be useful for the creation and building businesses through new technologies," Lipton said. The Indian government is effectively looking at how technologies can lead to better efficiency and less waste and corruption in government interactions with the people, whether it's in spending and benefits or the collection of taxes, the senior IMF official said. "So, I think in a big country, technology can be a way to leapfrog the more old-fashioned ways in building connectivity that leads to inclusion in the country," he said. Asked about the Aadhaar Card technology, Lipton said it is relatively new and seems to have many advantages. "It surely has huge promises and could help overcome remoteness and promote inclusion," he said. There certainly are possible drawbacks, he noted. "From the beginning, it's been clear that issues of privacy and data security are going to arise when you use a technology like this. And it'll be the societies' job to figure out the do's and don'ts of that," he said. "I hope it (India's progress) will show in poverty reduction statistics and eventually in a measurement of metrics of inclusion. "I've said there's more to be done. There are further reforms both in terms of consolidating the budget situation to ensure that there's never an incident of doubt about fiscal finances in terms of making the banking system more competitive and dealing with the legacy problems of NPAs (non- performing assets)," he said. The important job is not just to recapitalise, but to change the governance and change the competitiveness so that banks serve as a positive force, allocating credit well and being a driving force in the economy, he said. Asked about IMF Managing Director Christine Lagarde's remarks that she does not expect any major economic reforms in an election year, Lipton said: "It's always difficult to make policy during election years. "We certainly hope that there can continue to be a progress, but it's really the judgement of the politicians, the government about what can be done when". "If policies are managed well and reforms are supportive of inclusive growth, India's economy could become a powerhouse economy. It is already, I think the 10th largest, but with the population and the growth rate there's more potential. "The challenges of getting from here to there are very substantial. India needs a process of growth and development. And development means both economic and social development and more inclusion. We do think the gender gap in involving women, in the economy in a way that their full potential can contribute to India's economic growth is very important objective," Lipton added.

India's reforms bearing fruits, make case for more steps: IMF

Describing the latest incident of outrageous rape and murder of an eight-year-old girl in India as "revolting", IMF chief Christine Lagarde today hoped that the Indian authorities starting with Prime Minister Narendra Modi would pay more attention to it.

Her sharp remarks come in the backdrop of a nationwide outrage over the rape cases in Jammu and Kashmir's Kathua and Uttar Pradesh's Unnao.

"What has happened (in India) is just revolting. I would hope that the Indian authorities, starting with Prime Minister Modi pay more attention because it is needed for the women of India," Lagarde said.

"When I was last in Davos after Prime Minister Modi's speech, I did tell him that he had not mentioned the women of India enough. And it's not just a question of talking about them," the Managing Director of the International Monetary Fund said.

She quickly clarified that this was her personal position and not that of the IMF. "By the way this is not an IMF official position. It is my position," she said.&nbsp

Describing the latest incident of outrageous rape and murder of an eight-year-old girl in India as "revolting", IMF chief Christine Lagarde today hoped that the Indian authorities starting with Prime Minister Narendra Modi would pay more attention to it

Describing the latest incident of outrageous rape and murder of an eight-year-old girl in India as "revolting", IMF chief Christine Lagarde today hoped that the Indian authorities starting with Prime Minister Narendra Modi would pay more attention to it. Her sharp remarks come in the backdrop of a nationwide outrage over the rape cases in Jammu and Kashmir's Kathua and Uttar Pradesh's Unnao. "What has happened (in India) is just revolting. I would hope that the Indian authorities, starting with Prime Minister Modi pay more attention because it is needed for the women of India," Lagarde said. "When I was last in Davos after Prime Minister Modi's speech, I did tell him that he had not mentioned the women of India enough. And it's not just a question of talking about them," the Managing Director of the International Monetary Fund said. She quickly clarified that this was her personal position and not that of the IMF. "By the way this is not an IMF official position. It is my position," she said.

PM Modi need to pay more attention to women: IMF chief Christine Lagarde

A day after a top<a href="http://www.wionews.com/world/us-china-in-phone-war-over-trade-international-monetary-fund-131179"> International Monetary Fund(IMF) official </a>said China, US were engaged in a phoney war over trade, the director of the world monetary body Christine Lagarde the dispute could threaten global confidence and investment.

In Pics: PM Modi meets a friendly&nbspneighbour, friends at CHOGM

"When investors do not know under what terms they will be trading, when they don't know how to organise their supply chain, they are reluctant to invest," director of IMF Christine Lagarde said.

In a report, the IMF had said tariffs or other barriers leading to a 10 per cent increase in import prices would lower global output by about 1.75 per cent after five years and by close to 2 per cent in the long term.

"The actual impact on growth is not very substantial, when you measure in terms of GDP," Lagarde said on&nbsptariffs, adding that the "erosion of confidence" would be worse.

However, even as China and US sparred over trade, Maurice Obstfeld, Economic Counsellor and Director of the Research Department at the IMF had said on Wednesday that both countries were engaged in a "phoney war"

"You know, at this point, although some warning shots have been fired, it is more of a phony war," Obstfeld had said.

Lagarde said the trade tensions would be a major topic of discussion among finance ministers and central bank governors at the IMF and World Bank meetings.

"My suspicion is that there will be many bilateral discussions to be had between the various parties involved," Lagarde said, adding that the issue would also be discussed in larger sessions involving the Fund's 189 member countries.

"Investment and trade are two key engines that are finally picking up. We don't want to damage that," Lagarde said. 
&nbsp

Lagarde said the trade tensions would be a major topic of discussion among finance ministers and central bank governors at the IMF and World Bank meetings.

A day after a top International Monetary Fund(IMF) official said China, US were engaged in a phoney war over trade, the director of the world monetary body Christine Lagarde the dispute could threaten global confidence and investment. In Pics: PM Modi meets a friendly&nbspneighbour, friends at CHOGM "When investors do not know under what terms they will be trading, when they don't know how to organise their supply chain, they are reluctant to invest," director of IMF Christine Lagarde said. In a report, the IMF had said tariffs or other barriers leading to a 10 per cent increase in import prices would lower global output by about 1.75 per cent after five years and by close to 2 per cent in the long term. "The actual impact on growth is not very substantial, when you measure in terms of GDP," Lagarde said on&nbsptariffs, adding that the "erosion of confidence" would be worse. However, even as China and US sparred over trade, Maurice Obstfeld, Economic Counsellor and Director of the Research Department at the IMF had said on Wednesday that both countries were engaged in a "phoney war" "You know, at this point, although some warning shots have been fired, it is more of a phony war," Obstfeld had said. Lagarde said the trade tensions would be a major topic of discussion among finance ministers and central bank governors at the IMF and World Bank meetings. "My suspicion is that there will be many bilateral discussions to be had between the various parties involved," Lagarde said, adding that the issue would also be discussed in larger sessions involving the Fund's 189 member countries. "Investment and trade are two key engines that are finally picking up. We don't want to damage that," Lagarde said.

China, US trade row could threaten global confidence, investment: Christine Lagarde

With China and the US locked in difficult trade relations with President Trump threatening an all-out trade war, the International Monetary Fund(IMF) said it more of a "phony" trade war.

Maurice Obstfeld, Economic Counsellor and Director of the Research Department at the IMF said," I am not sure anyone has a formal definition of a trade war. It is certainly the case that shots have been fired and negotiations are going on on a largely bilateral basis."

Trump has often lashed out at China for following "unfair trade practices" focussing on "trade imbalances" with the Communist state. Last month the US president imposed tariffs worth $60 billion on Chinese imports.

"You know, at this point, although some warning shots have been fired, it is more of a phony war," Obstfeld said.

"But, again, no formal definition. I think if we get into a cycle of very widespread actions and counteractions, we would begin to see significant economic effects, and that would be, whether you call it a trade war or not, would be very worrisome," Obstfeld observed.

China has insisted it does not want to get into a trade war, however, in retaliatory action it&nbsp;imposed tariffs of upto 25 per cent on 128 US products including frozen fruits and nuts.

"There are not going to be any winners coming out of a trade war," Obstfeld said.

"While some governments are, indeed, pursuing substantial economic reforms, trade disputes risk diverting others from the constructive steps they would need to take now to improve and secure growth prospects," he said.

Trump has often lashed out at China for following "unfair trade practices" focussing on "trade imbalances" with the Communist state.

With China and the US locked in difficult trade relations with President Trump threatening an all-out trade war, the International Monetary Fund(IMF) said it more of a "phony" trade war. Maurice Obstfeld, Economic Counsellor and Director of the Research Department at the IMF said," I am not sure anyone has a formal definition of a trade war. It is certainly the case that shots have been fired and negotiations are going on on a largely bilateral basis." Trump has often lashed out at China for following "unfair trade practices" focussing on "trade imbalances" with the Communist state. Last month the US president imposed tariffs worth $60 billion on Chinese imports. "You know, at this point, although some warning shots have been fired, it is more of a phony war," Obstfeld said. "But, again, no formal definition. I think if we get into a cycle of very widespread actions and counteractions, we would begin to see significant economic effects, and that would be, whether you call it a trade war or not, would be very worrisome," Obstfeld observed. China has insisted it does not want to get into a trade war, however, in retaliatory action it imposed tariffs of upto 25 per cent on 128 US products including frozen fruits and nuts. "There are not going to be any winners coming out of a trade war," Obstfeld said. "While some governments are, indeed, pursuing substantial economic reforms, trade disputes risk diverting others from the constructive steps they would need to take now to improve and secure growth prospects," he said.

US, China in 'phony war' over trade: International Monetary Fund

China's ambitious 'One Belt One Road initiative' is an important project that can foster regional cooperation, but entails risks like debt sustainability, the International Monetary Fund said today.

Chinese President Xi Jinping's multi-billion project, the initiative focuses on improving connectivity and cooperation among Asian countries, Africa, China and Europe.

"The Belt and Road initiative is a very important initiative that we think can foster regional cooperation, including in trade and investment and finance, and it could indeed make a very significant contribution in terms of infrastructure, connectivity to countries and, again, all of this supporting trade and growth," IMF Spokesperson Gery Rice told reporters at his fortnightly news conference.

On the other hand, he said, like other major initiatives of this type, it can entail risks, including issues of debt sustainability and spillovers to other countries, as well as risks for China, including credit risk.

"So, the key is to balance, obviously, the potential benefits which we see, with the potential risks," Rice said in response to a question.

He said it depends on how the project would be implemented to ensure debt sustainability and participation of the private sector.

"All of this will help minimise the risks, maximise the benefits. I think that's the objective that we want to see," Rice said.

The IMF, he said, sees large potential benefits from the initiative, but with potential risks as well. "I think there are areas where, in particular, that can guard against those risks. And I think these risks will be discussed at a conference in April," Rice said.

IMF Managing Director Christine Lagarde will travel to Beijing early next month to attend the joint IMF-PBC, the Peoples Bank of China conference on the Belt and Road Initiative.

She will also meet several Chinese officials.

During her visit to China between April 9 and 12, Lagarde will attend the Boao forum and address the gathering during the opening ceremony on April 10. On April 11, she will deliver the Spring Meetings Curtain Raiser speech in Hong Kong.

Chinese President Xi Jinping's multi-billion project, the initiative focuses on improving connectivity and cooperation among Asian countries, Africa, China and Europe.

China's ambitious 'One Belt One Road initiative' is an important project that can foster regional cooperation, but entails risks like debt sustainability, the International Monetary Fund said today. Chinese President Xi Jinping's multi-billion project, the initiative focuses on improving connectivity and cooperation among Asian countries, Africa, China and Europe. "The Belt and Road initiative is a very important initiative that we think can foster regional cooperation, including in trade and investment and finance, and it could indeed make a very significant contribution in terms of infrastructure, connectivity to countries and, again, all of this supporting trade and growth," IMF Spokesperson Gery Rice told reporters at his fortnightly news conference. On the other hand, he said, like other major initiatives of this type, it can entail risks, including issues of debt sustainability and spillovers to other countries, as well as risks for China, including credit risk. "So, the key is to balance, obviously, the potential benefits which we see, with the potential risks," Rice said in response to a question. He said it depends on how the project would be implemented to ensure debt sustainability and participation of the private sector. "All of this will help minimise the risks, maximise the benefits. I think that's the objective that we want to see," Rice said. The IMF, he said, sees large potential benefits from the initiative, but with potential risks as well. "I think there are areas where, in particular, that can guard against those risks. And I think these risks will be discussed at a conference in April," Rice said. IMF Managing Director Christine Lagarde will travel to Beijing early next month to attend the joint IMF-PBC, the Peoples Bank of China conference on the Belt and Road Initiative. She will also meet several Chinese officials. During her visit to China between April 9 and 12, Lagarde will attend the Boao forum and address the gathering during the opening ceremony on April 10. On April 11, she will deliver the Spring Meetings Curtain Raiser speech in Hong Kong.

China's One Belt, One Road project involves credit risk: IMF

Acknowledging that unemployment is a major challenge that India is facing currently, the International Monetary Fund (IMF) today exuded confidence that the reforms being carried out in India in the last few years would end up creating new jobs in the country.

"Clearly India faces a challenge in terms of providing sufficient employment for a number of people looking for work and particularly young people. But yes, the measures and the reforms that India is undertaking will over medium term create jobs," the IMF spokesperson, Gerry Rice, told reporters at a news conference here.

Noting that India has been one of the fastest growing large economies in recent times, he said this has led to improvement in reducing poverty and improvements in living standards.

"Our view is that recent reforms, particularly the implementation of GST, national goods and services tax, should help boost efficiency and productivity and overtime will contribute to help them create jobs in the formal sector," Rice said when asked if India is experiencing jobless growth.

In addition, the government recently took steps towards labor market flexibility by modifying labor rules. "We think that these reforms will help to increase employment, perhaps not overnight but over the medium term," he said.

Noting that India has been one of the fastest growing large economies in recent times, he said this has led to improvement in reducing poverty and improvements in living standards.

Acknowledging that unemployment is a major challenge that India is facing currently, the International Monetary Fund (IMF) today exuded confidence that the reforms being carried out in India in the last few years would end up creating new jobs in the country. "Clearly India faces a challenge in terms of providing sufficient employment for a number of people looking for work and particularly young people. But yes, the measures and the reforms that India is undertaking will over medium term create jobs," the IMF spokesperson, Gerry Rice, told reporters at a news conference here. Noting that India has been one of the fastest growing large economies in recent times, he said this has led to improvement in reducing poverty and improvements in living standards. "Our view is that recent reforms, particularly the implementation of GST, national goods and services tax, should help boost efficiency and productivity and overtime will contribute to help them create jobs in the formal sector," Rice said when asked if India is experiencing jobless growth. In addition, the government recently took steps towards labor market flexibility by modifying labor rules. "We think that these reforms will help to increase employment, perhaps not overnight but over the medium term," he said.

Unemployment major challenge facing India: IMF

The Pakistan Muslim League-Nawaz (PML-N) government has accepted the International Monetary Fund's (IMF) pre-condition to let the Pakistani rupee depreciate by over four per cent to qualify for any fresh bailout package needed to avoid a default-like situation.

Notwithstanding Adviser on Finance Miftah Ismail`s statement that the government is not seeking any IMF assistance, the latter is said to have been obliged to steer through highly difficult 2017-18 and 2018-19 financial years respectively.

The PML-N government is likely to take up the issue of new IMF financing in April during World Bank-IMF spring meetings in Washington DC, in lieu of the worsening Balance of Payments (BOP). According to Ismail, he does not foresee any further downward readjustment of the currency in the near future.

However, officials of State Bank of Pakistan, the central bank of the country and the Ministry of Finance have maintained that lobbyists at home and abroad are working to persuade the authorities to go for another depreciation, not before June. Sources described it as a 'panic situation' in the Ministry of Finance and the word 'bottom line' is being used for seeking an emergency $6-7 billion in IMF assistance, in order to make timely repayments and tackle the looming balance of payments crisis, The Express Tribune reported. In the absence of any credible economic team, two finance ministry officials, Talib Balouch and Khaqan Najeeb, have suggested two options.

While Talib is calling for the seeking IMF assistance to ward off the impending balance of payments crisis, Khaqan suggests acquiring commercial loans continuously at a high markup. Since the World Bank and the Asian Development Bank (ADB) have linked their annual assistance to the IMF's signal, seeking commercial loans, particularly from China and Chinese commercial banks, are seen a viable option to manage external inflows.

A total of $1.3 billion in commercial borrowing had been obtained in the last few months, which also included $900 million in just one quarter. Successive secretaries of the Ministry of Finance and governors of State Bank of Pakistan are being held responsible for having created the current economic mess due to which the fiscal and current account deficits have increased disproportionately, causing new difficulties for the country.

Meanwhile, uncertainty over the economic situation in Pakistan has grown following the release of post-programme monitoring report by the IMF that believes risks to macroeconomic stability are increasing and widening fiscal and external deficits could land the country into new trouble. The timing of the report has been termed "intriguing" by independent economists as it eroded investors' confidence.

Experts have said that the IMF officials were 'partners in crime' as they had been waiving things by giving a clean bill of health to the Pakistani economy during the three-year $6.67 billion Extended Fund Facility that ended in September 2016.

The report pointed out serious risks that they believe of IMF officials surfaced after the completion of the programme. In fact, experts are suggesting that as long as the IMF programme continued, Pakistan's economy will keep on collapsing.

The PML-N government will complete its five-year term by early June this year. By at that time, external debt and liabilities would have crossed the $ 100 billion mark, which also includes the $2.5 billion added by the latest depreciation of the Pakistani rupee. The Pakistan government plans to have its revenue collection target fixed at 4.5 trillion Pakistani rupees for the financial year 2018-19.

Furthermore, the country will be forced to go for a strict stabilisation policy in the name of "austerity". But there is a growing consensus that the so-called stabilisation has caused problems to the economy's growth.&nbsp;

The Pakistan Muslim League-Nawaz (PML-N) government has accepted the International Monetary Fund`s (IMF) pre-condition to let the Pakistani rupee depreciate by over four per cent to qualify for any fresh bailout package needed to avoid a default-like situation

The Pakistan Muslim League-Nawaz (PML-N) government has accepted the International Monetary Fund's (IMF) pre-condition to let the Pakistani rupee depreciate by over four per cent to qualify for any fresh bailout package needed to avoid a default-like situation. Notwithstanding Adviser on Finance Miftah Ismail`s statement that the government is not seeking any IMF assistance, the latter is said to have been obliged to steer through highly difficult 2017-18 and 2018-19 financial years respectively. The PML-N government is likely to take up the issue of new IMF financing in April during World Bank-IMF spring meetings in Washington DC, in lieu of the worsening Balance of Payments (BOP). According to Ismail, he does not foresee any further downward readjustment of the currency in the near future. However, officials of State Bank of Pakistan, the central bank of the country and the Ministry of Finance have maintained that lobbyists at home and abroad are working to persuade the authorities to go for another depreciation, not before June. Sources described it as a 'panic situation' in the Ministry of Finance and the word 'bottom line' is being used for seeking an emergency $6-7 billion in IMF assistance, in order to make timely repayments and tackle the looming balance of payments crisis, The Express Tribune reported. In the absence of any credible economic team, two finance ministry officials, Talib Balouch and Khaqan Najeeb, have suggested two options. While Talib is calling for the seeking IMF assistance to ward off the impending balance of payments crisis, Khaqan suggests acquiring commercial loans continuously at a high markup. Since the World Bank and the Asian Development Bank (ADB) have linked their annual assistance to the IMF's signal, seeking commercial loans, particularly from China and Chinese commercial banks, are seen a viable option to manage external inflows. A total of $1.3 billion in commercial borrowing had been obtained in the last few months, which also included $900 million in just one quarter. Successive secretaries of the Ministry of Finance and governors of State Bank of Pakistan are being held responsible for having created the current economic mess due to which the fiscal and current account deficits have increased disproportionately, causing new difficulties for the country. Meanwhile, uncertainty over the economic situation in Pakistan has grown following the release of post-programme monitoring report by the IMF that believes risks to macroeconomic stability are increasing and widening fiscal and external deficits could land the country into new trouble. The timing of the report has been termed "intriguing" by independent economists as it eroded investors' confidence. Experts have said that the IMF officials were 'partners in crime' as they had been waiving things by giving a clean bill of health to the Pakistani economy during the three-year $6.67 billion Extended Fund Facility that ended in September 2016. The report pointed out serious risks that they believe of IMF officials surfaced after the completion of the programme. In fact, experts are suggesting that as long as the IMF programme continued, Pakistan's economy will keep on collapsing. The PML-N government will complete its five-year term by early June this year. By at that time, external debt and liabilities would have crossed the $ 100 billion mark, which also includes the $2.5 billion added by the latest depreciation of the Pakistani rupee. The Pakistan government plans to have its revenue collection target fixed at 4.5 trillion Pakistani rupees for the financial year 2018-19. Furthermore, the country will be forced to go for a strict stabilisation policy in the name of "austerity". But there is a growing consensus that the so-called stabilisation has caused problems to the economy's growth.

Pakistan's balance of payments worsens, likely to approach IMF next month

The International Monetary Fund warned the Trump administration on Friday that US import tariffs on steel and aluminium would cause damage not only to the countries outside the US but to the US economy itself.

&quot;The import restrictions announced by the US President (Donald Trump) are likely to cause damage not only outside the US, but also to the US economy itself, including to its manufacturing and construction sectors, which are major users of aluminium and steel,&quot; the IMF said in a terse statement.

&quot;We are concerned that the measures proposed by the US will, de facto, expand the circumstances where countries use the national-security rationale to justify broad-based import restrictions,&quot; IMF spokesman Gerry Rice said in the statement.

The IMF did not elaborate on the economic damages.

President Trump said on Thursday he planned to impose tariffs of 25 per cent on steel imports and 10 per cent on aluminium products in order to safeguard American jobs in the face of cheaper foreign products. A formal announcement would take place next week.

A day later, the European Union raised the possibility of taking countermeasures, France said the duties would be unacceptable and China urged Trump to show restraint. Canada, the biggest supplier of steel and aluminium to the United States, said it would retaliate if hit by US tariffs.

(With inputs from Reuters)

he International Monetary Fund warned the Trump administration on Friday that US import tariffs on steel and aluminium would cause damage not only to the countries outside the US but to the US economy itself

The International Monetary Fund warned the Trump administration on Friday that US import tariffs on steel and aluminium would cause damage not only to the countries outside the US but to the US economy itself. "The import restrictions announced by the US President (Donald Trump) are likely to cause damage not only outside the US, but also to the US economy itself, including to its manufacturing and construction sectors, which are major users of aluminium and steel," the IMF said in a terse statement. "We are concerned that the measures proposed by the US will, de facto, expand the circumstances where countries use the national-security rationale to justify broad-based import restrictions," IMF spokesman Gerry Rice said in the statement. The IMF did not elaborate on the economic damages. President Trump said on Thursday he planned to impose tariffs of 25 per cent on steel imports and 10 per cent on aluminium products in order to safeguard American jobs in the face of cheaper foreign products. A formal announcement would take place next week. A day later, the European Union raised the possibility of taking countermeasures, France said the duties would be unacceptable and China urged Trump to show restraint. Canada, the biggest supplier of steel and aluminium to the United States, said it would retaliate if hit by US tariffs. (With inputs from Reuters)

IMF warns Trump tarrifs would hit US economy

International Monetary Fund chief Christine Lagarde has no objection to plans to turn the euro zone`s bailout fund into a European Monetary Fund, she said in comments published on Saturday.

The European Commission has suggested transforming the role of the government-controlled European Stability Mechanism (ESM) into a full-blown European Monetary Fund under parliamentary control and anchored in European Union law, which would also become a backstop for the euro zone`s bank resolution fund.

The plan is backed by countries including France and Germany.

&quot;Why not?&quot; Lagarde said in an interview with Swiss newspaper Tages-Anzeiger.

&quot;The crisis the eurozone went through showed that it needs a crisis management system that is independent, able to act quickly and that works according to strict rules. What that mechanism is called is secondary. If one wants to call it European Monetary Fund, then please.&quot;

She also brushed aside the suggestion that the IMF`s role was being usurped in a region where it has been involved in bailing out Portugal, Ireland, Cyprus and Greece in recent years - often in exchange for oversight and painful reforms.

&quot;We do not serve a region but 189 countries. That also includes eurozone countries. And if together they decide that other crisis mechanisms like the ESM are involved, that is in order,&quot; she was quoted as saying.

The plan is backed by countries including France and Germany

International Monetary Fund chief Christine Lagarde has no objection to plans to turn the euro zone`s bailout fund into a European Monetary Fund, she said in comments published on Saturday. The European Commission has suggested transforming the role of the government-controlled European Stability Mechanism (ESM) into a full-blown European Monetary Fund under parliamentary control and anchored in European Union law, which would also become a backstop for the euro zone`s bank resolution fund. The plan is backed by countries including France and Germany. "Why not?" Lagarde said in an interview with Swiss newspaper Tages-Anzeiger. "The crisis the eurozone went through showed that it needs a crisis management system that is independent, able to act quickly and that works according to strict rules. What that mechanism is called is secondary. If one wants to call it European Monetary Fund, then please." She also brushed aside the suggestion that the IMF`s role was being usurped in a region where it has been involved in bailing out Portugal, Ireland, Cyprus and Greece in recent years - often in exchange for oversight and painful reforms. "We do not serve a region but 189 countries. That also includes eurozone countries. And if together they decide that other crisis mechanisms like the ESM are involved, that is in order," she was quoted as saying.

IMF chief says 'Why not?' to European Monetary Fund plan

Prime Minister Narendra Modi will address the opening plenary at the WEF&#39;s Davos summit next week, while the keynote address will be given by US President Donald Trump at the annual jamboree of the global elite to be attended by 70 state heads.

Besides, 38 heads of major international organisations such as the WTO, the IMF and the World Bank, as also nearly 2,000 CEOs including over 100 from India will be present at the five-day World Economic Forum (WEF) Annual Meeting 2018, beginning on January 22 with a welcome reception to be hosted by India.

Announcing the official programme in Geneva today, the WEF said the summit will see the largest ever engagement of global leaders this year where the key talking points would include international security, environment and the global economy.

The theme of the meeting, spread over 400 sessions, would be &#39;Creating a Shared Future in a Fractured World&#39;, while the meeting would also see the largest ever proportion of women leaders (21 per cent) including all co-chairs being women this time including social entrepreneur Chetna Sinha from India and IMF&#39;s Christine Lagarde, the WEF said.

Modi will be accompanied by six union ministers, including Finance Minister Arun Jaitley, Piyush Goyal, Suresh Prabhu, Dharmendra Pradhan, M J Akbar and Jitendra Singh.

Besides, two chief ministers (Devendra Fadnavis and Chandrababu Naidu) and over 100 CEOs would take India&#39;s total presence to 129 -- the fourth highest after the US (780), the UK (266) and Switzerland (233 people). China will have 118 participants.

Women participants would account for 12 per cent of total Indian presence, compared to 27 per cent from the US, 24 per cent from the UK, 22 per cent from Germany, 20 per cent from Switzerland, 19 per cent for China and 18 per cent for France.

The WEF said its 48th Annual Meeting will focus on finding ways to reaffirm international cooperation on crucial shared interests, such as international security, the environment and the global economy.

The meeting comes at a time when geostrategic competition among states is generally seen to be on the rise.

Alongside international cooperation, an additional priority of the meeting will be to overcome divisions within countries, said the WEF which describes itself as an international public-private organisation focussed on improving the state of the world.

The WEF said divisions have often been caused by breakdowns in the social contract as a result of failure to protect societies from the transformational impacts of a succession of shocks, from globalisation to the proliferation of social media and the birth of the Fourth Industrial Revolution.

&quot;Collectively, these shocks have caused a loss of trust in institutions and damaged the relationship between business and society,&quot; it added.

&quot;Our world has become fractured by increasing competition between nations and deep divides within societies. Yet the sheer scale of the challenges our world faces makes concerted, collaborative and integrated action more essential than ever,&quot; WEF&#39;s Founder and Executive Chairman Klaus Schwab said.

He further said the summit aims to overcome these fault lines by reasserting shared interests among nations and securing multistakeholder commitment to renewing social contracts through inclusive growth.

This year&#39;s opening plenary will be delivered by Modi on January 23, Prime Minister of India, while Trump will deliver a keynote address before the close of the meeting on January 26, the WEF said.

This year a record number of leaders from G7 economies will participate, including Paolo Gentiloni, Prime Minister of Italy; Jean-Claude Juncker, President of the European Commission; Emmanuel

Macron, President of France; Theresa May, Prime Minister of the United Kingdom; and Justin Trudeau, Prime Minister of Canada, in addition to President Trump.

Other leaders from the G20 countries would include Liu He, Member of Political Bureau and General Director of CPC Central Committee of the People&#39;s Republic of China; Argentina President Mauricio Macri, South Africa Deputy President Cyril Ramaphosa and Brazil President Michel Temer.

From the host country, Alain Berset, President of the Swiss Confederation, will also participate.

Overall, the summit will have over 340 top political leaders with 10 heads of state/government from Africa, nine from Middle East and North Africa and six from Latin America.

These include Ethiopia Prime Minister Hailemariam Dessalegn, Zimbabwe President Emmerson Mnangagwa, Nigeria Vice President Yemi Osinbajo, Lebanon President Saad Al Hariri, Jordan King

Abdullah II Bin Al Hussein, Israel Prime Minister Benjamin Netanyahu and Columbia President Juan Manuel Santos.

The summit will also be attended by 40 arts and culture leaders, including Bollywood star Shahrukh Khan, Cate Blanchett and Elton John.

One of the key issues to be discussed would be navigating a multipolar and multiconceptual world and the balance between global cooperation and local autonomy to prevent the disintegration of the world order.

Besides, the leaders will also discuss how to overcome divisions in society and if outrage cycles in media and political rhetoric are widening societal fault lines and undermining tolerance, then what solutions can be jointly developed to restore the social compact, the WEF said.

Besides, 38 heads of major international organisations such as the WTO, the IMF and the World Bank, as also nearly 2,000 CEOs including over 100 from India will be present at the World Economic Forum (WEF) Annual Meeting 2018

Prime Minister Narendra Modi will address the opening plenary at the WEF's Davos summit next week, while the keynote address will be given by US President Donald Trump at the annual jamboree of the global elite to be attended by 70 state heads. Besides, 38 heads of major international organisations such as the WTO, the IMF and the World Bank, as also nearly 2,000 CEOs including over 100 from India will be present at the five-day World Economic Forum (WEF) Annual Meeting 2018, beginning on January 22 with a welcome reception to be hosted by India. Announcing the official programme in Geneva today, the WEF said the summit will see the largest ever engagement of global leaders this year where the key talking points would include international security, environment and the global economy. The theme of the meeting, spread over 400 sessions, would be 'Creating a Shared Future in a Fractured World', while the meeting would also see the largest ever proportion of women leaders (21 per cent) including all co-chairs being women this time including social entrepreneur Chetna Sinha from India and IMF's Christine Lagarde, the WEF said. Modi will be accompanied by six union ministers, including Finance Minister Arun Jaitley, Piyush Goyal, Suresh Prabhu, Dharmendra Pradhan, M J Akbar and Jitendra Singh. Besides, two chief ministers (Devendra Fadnavis and Chandrababu Naidu) and over 100 CEOs would take India's total presence to 129 -- the fourth highest after the US (780), the UK (266) and Switzerland (233 people). China will have 118 participants. Women participants would account for 12 per cent of total Indian presence, compared to 27 per cent from the US, 24 per cent from the UK, 22 per cent from Germany, 20 per cent from Switzerland, 19 per cent for China and 18 per cent for France. The WEF said its 48th Annual Meeting will focus on finding ways to reaffirm international cooperation on crucial shared interests, such as international security, the environment and the global economy. The meeting comes at a time when geostrategic competition among states is generally seen to be on the rise. Alongside international cooperation, an additional priority of the meeting will be to overcome divisions within countries, said the WEF which describes itself as an international public-private organisation focussed on improving the state of the world. The WEF said divisions have often been caused by breakdowns in the social contract as a result of failure to protect societies from the transformational impacts of a succession of shocks, from globalisation to the proliferation of social media and the birth of the Fourth Industrial Revolution. "Collectively, these shocks have caused a loss of trust in institutions and damaged the relationship between business and society," it added. "Our world has become fractured by increasing competition between nations and deep divides within societies. Yet the sheer scale of the challenges our world faces makes concerted, collaborative and integrated action more essential than ever," WEF's Founder and Executive Chairman Klaus Schwab said. He further said the summit aims to overcome these fault lines by reasserting shared interests among nations and securing multistakeholder commitment to renewing social contracts through inclusive growth. This year's opening plenary will be delivered by Modi on January 23, Prime Minister of India, while Trump will deliver a keynote address before the close of the meeting on January 26, the WEF said. This year a record number of leaders from G7 economies will participate, including Paolo Gentiloni, Prime Minister of Italy; Jean-Claude Juncker, President of the European Commission; Emmanuel Macron, President of France; Theresa May, Prime Minister of the United Kingdom; and Justin Trudeau, Prime Minister of Canada, in addition to President Trump. Other leaders from the G20 countries would include Liu He, Member of Political Bureau and General Director of CPC Central Committee of the People's Republic of China; Argentina President Mauricio Macri, South Africa Deputy President Cyril Ramaphosa and Brazil President Michel Temer. From the host country, Alain Berset, President of the Swiss Confederation, will also participate. Overall, the summit will have over 340 top political leaders with 10 heads of state/government from Africa, nine from Middle East and North Africa and six from Latin America. These include Ethiopia Prime Minister Hailemariam Dessalegn, Zimbabwe President Emmerson Mnangagwa, Nigeria Vice President Yemi Osinbajo, Lebanon President Saad Al Hariri, Jordan King Abdullah II Bin Al Hussein, Israel Prime Minister Benjamin Netanyahu and Columbia President Juan Manuel Santos. The summit will also be attended by 40 arts and culture leaders, including Bollywood star Shahrukh Khan, Cate Blanchett and Elton John. One of the key issues to be discussed would be navigating a multipolar and multiconceptual world and the balance between global cooperation and local autonomy to prevent the disintegration of the world order. Besides, the leaders will also discuss how to overcome divisions in society and if outrage cycles in media and political rhetoric are widening societal fault lines and undermining tolerance, then what solutions can be jointly developed to restore the social compact, the WEF said.

WEF@Davos: Modi to address opening plenary; Trump on final day

The International Monetary Fund (IMF) today said it will update its growth rate forecast for India in January. Recently, the US-based Moody&#39;s upgraded India&#39;s sovereign rating after a gap of 13 years to Baa2, with &#39;stable&#39; outlook, from Baa3 earlier, citing improved growth prospects driven by economic and institutional reforms.

This was followed by S&amp;P Global Rating, which kept India&#39;s sovereign rating unchanged at BBB- with stable outlook saying vulnerabilities stemming from low per capita income and high government debt balances strong GDP growth.

&quot;We will be updating the forecast for India, including the growth rate, and that will be coming in January with the update of our World Economic Outlook,&quot; IMF spokesman Gerry Rice told reporters at a news conference held at its headquarters here.

The IMF statement came as the latest figures showed that India grew at 6.3 per cent in the September quarter compared to 5.7 per cent in the June quarter, reflecting an improvement in the Indian economy. In its news dispatch from New Delhi, The Wall Street Journal said India&#39;s economic expansion accelerated in the latest quarter, ending a five-quarter slowdown and sparking optimism that the negative effects of recent economic policies may now be behind Asia&#39;s third-largest economy.

CNN reported that India&#39;s economy has bounced back from a year-long slowdown, but it was not enough to regain the global growth crown from China.

Recently, the US-based Moody's upgraded India's sovereign rating after a gap of 13 years to Baa2, with 'stable' outlook

The International Monetary Fund (IMF) today said it will update its growth rate forecast for India in January. Recently, the US-based Moody's upgraded India's sovereign rating after a gap of 13 years to Baa2, with 'stable' outlook, from Baa3 earlier, citing improved growth prospects driven by economic and institutional reforms. This was followed by S&P Global Rating, which kept India's sovereign rating unchanged at BBB- with stable outlook saying vulnerabilities stemming from low per capita income and high government debt balances strong GDP growth. "We will be updating the forecast for India, including the growth rate, and that will be coming in January with the update of our World Economic Outlook," IMF spokesman Gerry Rice told reporters at a news conference held at its headquarters here. The IMF statement came as the latest figures showed that India grew at 6.3 per cent in the September quarter compared to 5.7 per cent in the June quarter, reflecting an improvement in the Indian economy. In its news dispatch from New Delhi, The Wall Street Journal said India's economic expansion accelerated in the latest quarter, ending a five-quarter slowdown and sparking optimism that the negative effects of recent economic policies may now be behind Asia's third-largest economy. CNN reported that India's economy has bounced back from a year-long slowdown, but it was not enough to regain the global growth crown from China.

IMF to update India's growth rate forecast in January

The growing split between the United States and the rest of the world spilled into the annual meetings of the International Monetary Fund and World Bank in Washington this week.

The US administration showed a diminished view of the Bretton Woods institutions that shaped a US-led order after World War II, rejecting efforts to expand their activities, and defending its attack on free-trade pacts as part of President Donald Trump&#39;s &quot;America First&quot; agenda.

And at the same time, the US continued to stymie China&#39;s ambitions to elevate its global role via an expanded stake in both the IMF and World Bank.

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The Trump administration spelled out its view by rejecting a capital increase that the World Bank wants to expand its global anti-poverty mission.

&quot;More capital is not the solution when existing capital is not allocated effectively,&quot; Treasury Secretary Steven Mnuchin said in a statement Friday, one day after Bank President Jim Yong Kim said he believed the Trump administration was now supportive of the move.

There was also no movement on the IMF&#39;s long-planned boost in its lending resources that would come with a shakeup of its shareholder quotas. Last year, the Republican-controlled Congress effectively vetoed the move, and the Trump administration has not supported bringing it back to life.

US questions IMF, Bank pay 
Instead, Mnuchin took aim at the IMF and World Bank bureaucracies, calling them inefficient and suggesting their staffs are overpaid -- a longstanding view among many US conservative critics of both.&nbsp;

&quot;We see scope for further budget discipline, especially with respect to compensation and the Executive Board budget,&quot; he said of the World Bank.

The new US stance on globalization under the Trump administration also came through in the meeting of the G20 finance ministers and central bank chiefs that took place during the IMF-World Bank meetings.

In the past, the group regularly raised the alarm over protectionist and anti-free-trade sentiment.

But this week the Trump administration -- which this year killed the Trans-Pacific Partnership with Asia-Pacific nations, stalled talks on a transatlantic free trade zone, and forced a renegotiation of the North American Free Trade Agreement -- appeared to stifle such talk.

After presenting a tepid G20 statement with no mention of trade or protectionism, German Finance Minister Wolfgang Schaeuble quipped that the G20 lacks expertise in the matter. Because of that, he said, &quot;at this time, global discussions are much more relaxed.&quot;

Schaeuble challenges US 
The US differences with its allies were not evident on the surface, and the nearly week-long meetings of the two giant multilateral institutions went off smoothly.&nbsp;

The World Bank&#39;s Kim and IMF chief Christine Lagarde kept the focus on the need for countries to reform for the long term while global growth is strong, and to address growing inequality, especially in the most developed nations.

But in statements to the steering committees of the two institutions, many countries made clear their differences with the United States.

Most said they backed a capital hike for the World Bank. Schaeuble called it &quot;urgent.&quot;

He also was tough on the trade issue.&nbsp;

&quot;We should all be concerned about slow global trade growth and increased anti-free-trade rhetoric. Both are a threat to our common economic prosperity,&quot; Schaeuble said.&nbsp;

<a href="http://www.wionews.com/india-news/world-praising-india-for-reforms-like-demonetisation-gst-arun-jaitley-22453" target="_blank">Also read:&nbsp;World praising India for reforms like demonetisation &amp; GST, says Arun Jaitley</a>

&quot;Protectionist measures will only harm growth and harm those they claim to protect,&quot; he added.

In its formal statement, China called the lack of progress on increasing World Bank capital &quot;regrettable.&quot;

&#39;Climate change&#39; restored 
It is a crucial issue for Beijing, which sees that a larger shareholding in both the IMF and World Bank, both dominated by the United States, would recognize its status as the world&#39;s number two economy and a political superpower.

&quot;We hope that all parties will provide more political impetus from the perspective of increasing the legitimacy and effectiveness of the World Bank&#39;s governance structure... so as to increase the representation and voice of emerging market and developing countries,&quot; China said.

The US push for both to curb compensation met unenthusiastic reactions. In a closing statement, the Bank&#39;s steering committee blandly pledged support for a compensation review.

But the IMF bristled. &quot;The Fund is highly cost-conscious and in fact we have been operating under a flat budget in real terms for six years in a row,&quot; a spokesperson said. &quot;Salaries and benefits are reviewed on a regular basis by our Executive Board.&quot;

But one notable change suggested the Trump administration was not always getting its way -- or was changing its stance.&nbsp;

In the April IMF-World Bank meetings, the final Bank statement was bereft of any mention of climate change, reflecting Trump&#39;s refusal to accept it as a key global challenge.

In the statement released Saturday, climate change was reinstated as one of the world&#39;s key challenges.

The US rejected the World Bank's and the IMF's efforts to expand their activities, and defended its attack on free-trade pacts as part of President Donald Trump's 'America First' agenda

The growing split between the United States and the rest of the world spilled into the annual meetings of the International Monetary Fund and World Bank in Washington this week. The US administration showed a diminished view of the Bretton Woods institutions that shaped a US-led order after World War II, rejecting efforts to expand their activities, and defending its attack on free-trade pacts as part of President Donald Trump's "America First" agenda. And at the same time, the US continued to stymie China's ambitions to elevate its global role via an expanded stake in both the IMF and World Bank. US Treasury Secretary Steve Mnuchin took aim at the IMF and World Bank bureaucracies, calling them inefficient and suggesting their staffs are overpaid -- a longstanding view among many US conservative critics of both × The Trump administration spelled out its view by rejecting a capital increase that the World Bank wants to expand its global anti-poverty mission. "More capital is not the solution when existing capital is not allocated effectively," Treasury Secretary Steven Mnuchin said in a statement Friday, one day after Bank President Jim Yong Kim said he believed the Trump administration was now supportive of the move. There was also no movement on the IMF's long-planned boost in its lending resources that would come with a shakeup of its shareholder quotas. Last year, the Republican-controlled Congress effectively vetoed the move, and the Trump administration has not supported bringing it back to life. US questions IMF, Bank pay Instead, Mnuchin took aim at the IMF and World Bank bureaucracies, calling them inefficient and suggesting their staffs are overpaid -- a longstanding view among many US conservative critics of both. "We see scope for further budget discipline, especially with respect to compensation and the Executive Board budget," he said of the World Bank. The new US stance on globalization under the Trump administration also came through in the meeting of the G20 finance ministers and central bank chiefs that took place during the IMF-World Bank meetings. In the past, the group regularly raised the alarm over protectionist and anti-free-trade sentiment. But this week the Trump administration -- which this year killed the Trans-Pacific Partnership with Asia-Pacific nations, stalled talks on a transatlantic free trade zone, and forced a renegotiation of the North American Free Trade Agreement -- appeared to stifle such talk. After presenting a tepid G20 statement with no mention of trade or protectionism, German Finance Minister Wolfgang Schaeuble quipped that the G20 lacks expertise in the matter. Because of that, he said, "at this time, global discussions are much more relaxed." Schaeuble challenges US The US differences with its allies were not evident on the surface, and the nearly week-long meetings of the two giant multilateral institutions went off smoothly. The World Bank's Kim and IMF chief Christine Lagarde kept the focus on the need for countries to reform for the long term while global growth is strong, and to address growing inequality, especially in the most developed nations. But in statements to the steering committees of the two institutions, many countries made clear their differences with the United States. Most said they backed a capital hike for the World Bank. Schaeuble called it "urgent." He also was tough on the trade issue. "We should all be concerned about slow global trade growth and increased anti-free-trade rhetoric. Both are a threat to our common economic prosperity," Schaeuble said. Also read: World praising India for reforms like demonetisation & GST, says Arun Jaitley "Protectionist measures will only harm growth and harm those they claim to protect," he added. In its formal statement, China called the lack of progress on increasing World Bank capital "regrettable." 'Climate change' restored It is a crucial issue for Beijing, which sees that a larger shareholding in both the IMF and World Bank, both dominated by the United States, would recognize its status as the world's number two economy and a political superpower. "We hope that all parties will provide more political impetus from the perspective of increasing the legitimacy and effectiveness of the World Bank's governance structure... so as to increase the representation and voice of emerging market and developing countries," China said. The US push for both to curb compensation met unenthusiastic reactions. In a closing statement, the Bank's steering committee blandly pledged support for a compensation review. But the IMF bristled. "The Fund is highly cost-conscious and in fact we have been operating under a flat budget in real terms for six years in a row," a spokesperson said. "Salaries and benefits are reviewed on a regular basis by our Executive Board." But one notable change suggested the Trump administration was not always getting its way -- or was changing its stance. In the April IMF-World Bank meetings, the final Bank statement was bereft of any mention of climate change, reflecting Trump's refusal to accept it as a key global challenge. In the statement released Saturday, climate change was reinstated as one of the world's key challenges.

Divide between US & rest of world spills out at World Bank-IMF meetings in Washington

The International Monetary Fund said Asia&#39;s economic outlook faces &quot;significant&quot; uncertainty and downside growth risks from any sudden tightening in global financial conditions or rise in protectionist trade policies.

The IMF, which in April raised its 2017 Asia-Pacific growth forecast to 5.5 per cent from its previous October forecast of 5.4 per cent, said loose monetary and fiscal policies across most of the region would underpin domestic demand.

&quot;However, the near-term outlook is clouded with significant uncertainty, and risks, on balance, remain slanted to the downside,&quot; the IMF said in its Asia-Pacific regional economic outlook released on Tuesday.

In April, the IMF kept the region&#39;s 2018 growth forecast unchanged at 5.4 per cent. Asia-Pacific recorded 5.3 per cent growth in 2016.

The report comes at a time when policymakers around the region are wrestling with the challenge of how to navigate rising risks of protectionism under U.S. President Donald Trump, and a potential increase in funding costs as the Federal Reserve steps up the pace of rate hikes.

Continued tightening of global financial conditions could trigger volatility in capital flows, and the region could see large spillovers if China&#39;s shift to a more consumption-driven economy proves bumpier than expected, the IMF said.

&quot;A possible shift towards protectionism in major trading partners also represents a substantial risk to the region. Asia is particularly vulnerable to a decline in global trade because the region has a high trade openness ratio, with significant participation in global supply chains,&quot; it said.

The IMF said exchange rate flexibility should remain the &quot;main shock absorber&quot; against a sudden tightening in global financial conditions or shift toward protectionism.

It added, however, that &quot;judicious&quot; foreign exchange intervention might be called for in certain cases, such as when disorderly market conditions or rapid exchange rate movements threaten financial or corporate stability.

The IMF emphasised that foreign exchange intervention should not be used to resist currency moves that reflect changes in fundamentals including in the global trade environment or as a substitute for macroeconomic policy adjustments.

Ageing demographics and a slowdown in productivity growth since the global financial crisis pose medium-term headwinds to the region&#39;s economic growth, the IMF said, adding that parts of Asia risk &quot;becoming old before becoming rich&quot;.

&quot;Adapting to aging could be especially challenging for Asia, as populations living at relatively low per capita income levels in many parts of the region are rapidly becoming old,&quot; it said.

The IMF said monetary policy should generally remain accommodative in the region since inflation is below target and there is slack in most Asian economies.

If growth weakens further, some regional central banks such as those in Malaysia and Thailand, may have room to cut interest rates as long as external stability is not compromised, while others in India, Indonesia, and Vietnam should be ready to raise interest rates if inflationary pressures strengthen, the IMF said.

(Reuters)

The IMF, which in April raised its 2017 Asia-Pacific growth forecast to 5.5 per cent from its previous October forecast of 5.4 per cent, said loose monetary and fiscal policies across most of the region would underpin domestic demand

The International Monetary Fund said Asia's economic outlook faces "significant" uncertainty and downside growth risks from any sudden tightening in global financial conditions or rise in protectionist trade policies. The IMF, which in April raised its 2017 Asia-Pacific growth forecast to 5.5 per cent from its previous October forecast of 5.4 per cent, said loose monetary and fiscal policies across most of the region would underpin domestic demand. "However, the near-term outlook is clouded with significant uncertainty, and risks, on balance, remain slanted to the downside," the IMF said in its Asia-Pacific regional economic outlook released on Tuesday. In April, the IMF kept the region's 2018 growth forecast unchanged at 5.4 per cent. Asia-Pacific recorded 5.3 per cent growth in 2016. The report comes at a time when policymakers around the region are wrestling with the challenge of how to navigate rising risks of protectionism under U.S. President Donald Trump, and a potential increase in funding costs as the Federal Reserve steps up the pace of rate hikes. Continued tightening of global financial conditions could trigger volatility in capital flows, and the region could see large spillovers if China's shift to a more consumption-driven economy proves bumpier than expected, the IMF said. "A possible shift towards protectionism in major trading partners also represents a substantial risk to the region. Asia is particularly vulnerable to a decline in global trade because the region has a high trade openness ratio, with significant participation in global supply chains," it said. The IMF said exchange rate flexibility should remain the "main shock absorber" against a sudden tightening in global financial conditions or shift toward protectionism. It added, however, that "judicious" foreign exchange intervention might be called for in certain cases, such as when disorderly market conditions or rapid exchange rate movements threaten financial or corporate stability. The IMF emphasised that foreign exchange intervention should not be used to resist currency moves that reflect changes in fundamentals including in the global trade environment or as a substitute for macroeconomic policy adjustments. Ageing demographics and a slowdown in productivity growth since the global financial crisis pose medium-term headwinds to the region's economic growth, the IMF said, adding that parts of Asia risk "becoming old before becoming rich". "Adapting to aging could be especially challenging for Asia, as populations living at relatively low per capita income levels in many parts of the region are rapidly becoming old," it said. The IMF said monetary policy should generally remain accommodative in the region since inflation is below target and there is slack in most Asian economies. If growth weakens further, some regional central banks such as those in Malaysia and Thailand, may have room to cut interest rates as long as external stability is not compromised, while others in India, Indonesia, and Vietnam should be ready to raise interest rates if inflationary pressures strengthen, the IMF said. (Reuters)

IMF says Asia's economy facing 'significant' growth risks from rise in protectionism

India&#39;s economy will overtake that of Germany to become the fourth largest and knock Britain out of the top&nbsp;five by 2022, an IMF study, based on analysis of growth projections, said, reported Bloomberg.

But there are significant headwinds before the economy. The biggest risk is the massive amount of bad debts plaguing the Indian banking industry.

IMF&#39;s deputy managing director Tao Zhang, in an exclusive interview to PTI, said that the health of the Indian banking industry, which is facing massive amounts of bad debt, is a concern for IMF.

However, he expressed confidence in the economic reforms being taken up. He said that the roll out of GST could move up the medium-term economic growth rate to more than eight per cent.

Other significant challenges before the Indian economy are overhauling the infrastructure, creating job opportunities, and raising corporate investments in the country.

(WION)&nbsp;

But there are significant headwinds before the economy. The biggest risk is the massive amount of bad debts plaguing the Indian banking industry

India's economy will overtake that of Germany to become the fourth largest and knock Britain out of the top five by 2022, an IMF study, based on analysis of growth projections, said, reported Bloomberg. But there are significant headwinds before the economy. The biggest risk is the massive amount of bad debts plaguing the Indian banking industry. IMF's deputy managing director Tao Zhang, in an exclusive interview to PTI, said that the health of the Indian banking industry, which is facing massive amounts of bad debt, is a concern for IMF. However, he expressed confidence in the economic reforms being taken up. He said that the roll out of GST could move up the medium-term economic growth rate to more than eight per cent. Other significant challenges before the Indian economy are overhauling the infrastructure, creating job opportunities, and raising corporate investments in the country. (WION)

IMF says Indian economy will be fourth largest by 2022: Bloomberg

The ambitious Goods and Services Tax to be implemented from July 1 would help raise India&#39;s medium-term growth to above eight per cent, the International Monetary Fund has said adding that the reforms being done is expected to pay off in terms of higher growth in the future.

&quot;The government has made significant progress on important economic reforms that will support strong and sustainable growth going forward,&quot; Tao Zhang, Deputy Managing Director of the International Monetary Fund, told PTI in an exclusive interview.

&quot;We expect that the goods and services tax (GST), which is targeted to be applied starting in July, will help raise India&#39;s medium-term growth to above 8 per cent, as it will enhance production and the movement of goods and services across Indian states,&quot; the IMF official said.

&quot;We are extremely impressed by the work that is being done and that we expect it will pay off in terms of higher growth in the future,&quot; he said in response to a question on the reforms being undertaken by the Indian Government.

Observing that India is the &quot;fastest growing emerging market economy&quot; in a region that remains the strongest-growing in the world, Zhang said the IMF believes that India is going to continue to grow at a fast pace, with a projected 6.8 per cent rate for Financial Year 2016/17 and 7.2 per cent in 2017/18.

Lower global oil prices have boosted economic activity, and helped lower inflation.

In addition, fiscal and monetary policies have helped foster economic stability, he said.

&quot;The currency exchange initiative led to a slowdown in economic activity. However, there are initial signs of recovery as the currency exchange has been progressing well,&quot; said Zhang, who assumed the role of Deputy Managing Director at the IMF on August 22, 2016.

Zhang, who worked at the World Bank from 1995 to 1997 and at the Asian Development Bank from 1997 to 2004, said a key concern for the IMF in India is the health of the banking system, &quot;which is still dealing with a large amount of bad loans&quot;, as well as &quot;heightened corporate vulnerabilities&quot; in several key sectors of the economy.

&quot;As India persists with its strong reform efforts, labour market reforms should take priority,&quot; he noted.

These would facilitate greater and better quality jobs, raise female labour force participation, and enhance the impact of recent product market reforms, he observed.

&quot;While there has been important progress generally, we see scope to pursue better targeting and greater efficiency of subsidy and social spending programs through greater use of the trio of Aadhaar unique beneficiary identification, direct benefit transfers, and information technology,&quot; Zhao said.

&quot;Finally, more could be done to raise agricultural productivity and enhance market efficiency. This would help increase the supply of high-value foods, enhance returns to farmers, and dampen food inflation pressures,&quot; said the IMF official responding to a question.

(PTI)&nbsp;

'The government has made significant progress on important economic reforms that will support strong and sustainable growth going forward,' Tao Zhang, Deputy Managing Director of the IMF said

The ambitious Goods and Services Tax to be implemented from July 1 would help raise India's medium-term growth to above eight per cent, the International Monetary Fund has said adding that the reforms being done is expected to pay off in terms of higher growth in the future. "The government has made significant progress on important economic reforms that will support strong and sustainable growth going forward," Tao Zhang, Deputy Managing Director of the International Monetary Fund, told PTI in an exclusive interview. "We expect that the goods and services tax (GST), which is targeted to be applied starting in July, will help raise India's medium-term growth to above 8 per cent, as it will enhance production and the movement of goods and services across Indian states," the IMF official said. "We are extremely impressed by the work that is being done and that we expect it will pay off in terms of higher growth in the future," he said in response to a question on the reforms being undertaken by the Indian Government. Observing that India is the "fastest growing emerging market economy" in a region that remains the strongest-growing in the world, Zhang said the IMF believes that India is going to continue to grow at a fast pace, with a projected 6.8 per cent rate for Financial Year 2016/17 and 7.2 per cent in 2017/18. Lower global oil prices have boosted economic activity, and helped lower inflation. In addition, fiscal and monetary policies have helped foster economic stability, he said. "The currency exchange initiative led to a slowdown in economic activity. However, there are initial signs of recovery as the currency exchange has been progressing well," said Zhang, who assumed the role of Deputy Managing Director at the IMF on August 22, 2016. Zhang, who worked at the World Bank from 1995 to 1997 and at the Asian Development Bank from 1997 to 2004, said a key concern for the IMF in India is the health of the banking system, "which is still dealing with a large amount of bad loans", as well as "heightened corporate vulnerabilities" in several key sectors of the economy. "As India persists with its strong reform efforts, labour market reforms should take priority," he noted. These would facilitate greater and better quality jobs, raise female labour force participation, and enhance the impact of recent product market reforms, he observed. "While there has been important progress generally, we see scope to pursue better targeting and greater efficiency of subsidy and social spending programs through greater use of the trio of Aadhaar unique beneficiary identification, direct benefit transfers, and information technology," Zhao said. "Finally, more could be done to raise agricultural productivity and enhance market efficiency. This would help increase the supply of high-value foods, enhance returns to farmers, and dampen food inflation pressures," said the IMF official responding to a question. (PTI)

GST will raise India's economic growth to more than 8%: IMF

The Trump administration had a simple but stark message for world financial leaders who gathered in Washington on Thursday amid worries about rising US&nbsp;protectionism: fair trade means tit-for-tat tariffs.

Speaking to bankers just hours after the formal start of the International Monetary Fund and World Bank spring meetings, White House National Economic Council Director Gary Cohn said Washington was prepared to get tougher in the trade arena.

&quot;If you want to insist on having a tariff on a product - which we prefer you not - the president believes that we should treat you in a reciprocal fashion and that we should tax your product coming into the United States,&quot; Cohn said. &quot;That is free, that is open, and that is fair.&quot;

Asked at the Institute of International Finance about his message for his international counterparts, Cohn said the United States doesn&#39;t want to be &quot;taken advantage of&quot; any more.

&quot;The message is simple. We care about the United States of America, we care about economic prosperity, we care about economic growth, we care about trade, we care about being treated fairly,&quot; he said.

Earlier at the White House, President Donald Trump signed a directive to study whether steel imports into the United States should be restricted for national security reasons under a law passed in 1962.

Such moves, including a review of &quot;Buy American&quot; rules launched earlier this week, have raised concerns that the Trump administration is looking outside the World Trade Organization for remedies to restrict US&nbsp;imports.

IMF Managing Director Christine Lagarde told reporters on Thursday that more needed to be done to make the global trading system fairer and expressed a willingness to work with Trump to do just that.

In a news conference, Lagarde said there was a need to improve the WTO dispute settlement rules as well as reduce government subsidies for industry and tackle other trade distortions.

She said the IMF would do its part in working to cut government subsidies for industry and other trade practices that limit competition, but said &quot;protectionist measures&quot; needed to be avoided.

&quot;From the various contacts that I&#39;ve had with the (Trump) administration so far, I have every reason to believe that we will make progress, that we will cooperate all together in order to support and indeed improve the system as we have it,&quot; Lagarde said.

The IMF also has expressed concerns about the Trump administration&#39;s plan to cut taxes, releasing reports on Wednesday that said such a move could fuel financial risk-taking and increase public debt.

Appearing alongside Cohn, US&nbsp;Treasury Secretary Steven Mnuchin said he would unveil the tax plan &quot;soon, very soon,&quot; and predicted it would be passed by Congress this year.

But he gave few details and shed no light on whether the plan would include a controversial border-tax component.

&quot;It will be sweeping, it will be significant and it will create a lot of economic growth,&quot; Mnuchin said. &quot;The plan will pay for itself with growth.&quot;

Separately, World Bank President Jim Yong Kim also put in a plug for free trade and said he was &quot;encouraged&quot; by his engagement so far with Trump. But he added that he would not reduce the multilateral lender&#39;s commitment to trade or to financing alternative energy projects.

&quot;The science of climate change didn&#39;t change with any particular election, and I don&#39;t see that it will,&quot; Kim said at a news conference. &quot;We have to be an evidence-based organisation.&quot;

&nbsp;

&#39;LITTLE LEVERAGE&#39;

The IMF and World Bank meetings come about a month after Mnuchin insisted that an anti-protectionism pledge be dropped from a Group of 20 communique issued in Baden-Baden, Germany.

Eswar Prasad, former head of the IMF&#39;s China department, said the Trump administration may choose to simply ignore the advice of the IMF and other institutions.

&quot;The IMF has little leverage since its limited toolkit of analysis-based advice, persuasion, and peer pressure is unlikely to have much of an impact on this administration&#39;s policies,&quot; said Prasad, now an international trade professor at Cornell University.

Mnuchin&#39;s decision against naming China a currency manipulator last week removed one concern for the IMF ahead of the meetings.

(Reuters)

Asked about his message for his international counterparts, Cohn said the United States doesn't want to be 'taken advantage of' any more

The Trump administration had a simple but stark message for world financial leaders who gathered in Washington on Thursday amid worries about rising US protectionism: fair trade means tit-for-tat tariffs. Speaking to bankers just hours after the formal start of the International Monetary Fund and World Bank spring meetings, White House National Economic Council Director Gary Cohn said Washington was prepared to get tougher in the trade arena. "If you want to insist on having a tariff on a product - which we prefer you not - the president believes that we should treat you in a reciprocal fashion and that we should tax your product coming into the United States," Cohn said. "That is free, that is open, and that is fair." Asked at the Institute of International Finance about his message for his international counterparts, Cohn said the United States doesn't want to be "taken advantage of" any more. "The message is simple. We care about the United States of America, we care about economic prosperity, we care about economic growth, we care about trade, we care about being treated fairly," he said. Earlier at the White House, President Donald Trump signed a directive to study whether steel imports into the United States should be restricted for national security reasons under a law passed in 1962. Such moves, including a review of "Buy American" rules launched earlier this week, have raised concerns that the Trump administration is looking outside the World Trade Organization for remedies to restrict US imports. IMF Managing Director Christine Lagarde told reporters on Thursday that more needed to be done to make the global trading system fairer and expressed a willingness to work with Trump to do just that. In a news conference, Lagarde said there was a need to improve the WTO dispute settlement rules as well as reduce government subsidies for industry and tackle other trade distortions. She said the IMF would do its part in working to cut government subsidies for industry and other trade practices that limit competition, but said "protectionist measures" needed to be avoided. "From the various contacts that I've had with the (Trump) administration so far, I have every reason to believe that we will make progress, that we will cooperate all together in order to support and indeed improve the system as we have it," Lagarde said. The IMF also has expressed concerns about the Trump administration's plan to cut taxes, releasing reports on Wednesday that said such a move could fuel financial risk-taking and increase public debt. Appearing alongside Cohn, US Treasury Secretary Steven Mnuchin said he would unveil the tax plan "soon, very soon," and predicted it would be passed by Congress this year. But he gave few details and shed no light on whether the plan would include a controversial border-tax component. "It will be sweeping, it will be significant and it will create a lot of economic growth," Mnuchin said. "The plan will pay for itself with growth." Separately, World Bank President Jim Yong Kim also put in a plug for free trade and said he was "encouraged" by his engagement so far with Trump. But he added that he would not reduce the multilateral lender's commitment to trade or to financing alternative energy projects. "The science of climate change didn't change with any particular election, and I don't see that it will," Kim said at a news conference. "We have to be an evidence-based organisation." 'LITTLE LEVERAGE' The IMF and World Bank meetings come about a month after Mnuchin insisted that an anti-protectionism pledge be dropped from a Group of 20 communique issued in Baden-Baden, Germany. Eswar Prasad, former head of the IMF's China department, said the Trump administration may choose to simply ignore the advice of the IMF and other institutions. "The IMF has little leverage since its limited toolkit of analysis-based advice, persuasion, and peer pressure is unlikely to have much of an impact on this administration's policies," said Prasad, now an international trade professor at Cornell University. Mnuchin's decision against naming China a currency manipulator last week removed one concern for the IMF ahead of the meetings. (Reuters)

Trump admin, world financial officials clash over trade

The International Monetary Fund(IMF) today trimmed India&#39;s annual growth forecast by 0.4 percentage point to 7.2 per cent for 2017, citing the impact of demonetisation.

&quot;In India, the growth forecast for 2017 has been trimmed by 0.4 percentage point to 7.2 per cent, primarily because of the temporary negative consumption shock induced by cash shortages and payment disruptions from the recent currency exchange initiative,&quot; the International Monetary Fund (IMF) said in its latest annual World Economic Outlook (WEO).

However, the IMF gave India a favourable growth forecast in&nbsp;the medium term. 
&nbsp;&nbsp; 
&quot;Medium-term growth prospects are favourable, with growth forecast to rise to about eight per cent over the medium term due to the implementation of key reforms, loosening of supply-side bottlenecks, and appropriate fiscal and monetary policies,&quot; the IMF said.

The IMF also said China&#39;s strong growth was clouded in the medium term by &quot;growing vulnerabilities&quot; associated with its reliance on policy easing and credit-financed investment. This could prompt a sharp tightening of financial conditions that could cause spillovers to many other countries.

In its latest World Economic Outlook, it said chronically weak advanced economies are expected to benefit from a cyclical recovery in global manufacturing and trade that started to gain momentum last summer.

&quot;The economic upswing that we have expected for some time seems to be materializing,&quot; IMF chief economist Maurice Obstfeld wrote in the report.

The IMF lifted Japan&#39;s 2017 growth projection by 0.4 percentage point from January, to 1.2 per cent, while the eurozone and China both saw a 0.1 percentage point growth forecast increase to 1.7 per cent and 6.6 per cent, respectively.

It held the US growth forecast steady at 2.3 per cent, which still represents a substantial jump from 1.6 per cent growth in 2016, &nbsp;partly due to expectations that President Donald Trump will cut taxes and increase government spending.

The IMF also revised Britain&#39;s growth forecast to 2.0 per cent for 2017, up a half percentage point from January. The Fund said negative effects from the UK vote to leave the European Union are taking longer to materialize.

(Inputs: Reuters, PTI)

The International Monetary Fund said India's growth rate will fall by 0.4 percentage point to 7.2% this year

The International Monetary Fund(IMF) today trimmed India's annual growth forecast by 0.4 percentage point to 7.2 per cent for 2017, citing the impact of demonetisation. "In India, the growth forecast for 2017 has been trimmed by 0.4 percentage point to 7.2 per cent, primarily because of the temporary negative consumption shock induced by cash shortages and payment disruptions from the recent currency exchange initiative," the International Monetary Fund (IMF) said in its latest annual World Economic Outlook (WEO). However, the IMF gave India a favourable growth forecast in the medium term. "Medium-term growth prospects are favourable, with growth forecast to rise to about eight per cent over the medium term due to the implementation of key reforms, loosening of supply-side bottlenecks, and appropriate fiscal and monetary policies," the IMF said. The IMF also said China's strong growth was clouded in the medium term by "growing vulnerabilities" associated with its reliance on policy easing and credit-financed investment. This could prompt a sharp tightening of financial conditions that could cause spillovers to many other countries. In its latest World Economic Outlook, it said chronically weak advanced economies are expected to benefit from a cyclical recovery in global manufacturing and trade that started to gain momentum last summer. "The economic upswing that we have expected for some time seems to be materializing," IMF chief economist Maurice Obstfeld wrote in the report. The IMF lifted Japan's 2017 growth projection by 0.4 percentage point from January, to 1.2 per cent, while the eurozone and China both saw a 0.1 percentage point growth forecast increase to 1.7 per cent and 6.6 per cent, respectively. It held the US growth forecast steady at 2.3 per cent, which still represents a substantial jump from 1.6 per cent growth in 2016, partly due to expectations that President Donald Trump will cut taxes and increase government spending. The IMF also revised Britain's growth forecast to 2.0 per cent for 2017, up a half percentage point from January. The Fund said negative effects from the UK vote to leave the European Union are taking longer to materialize. (Inputs: Reuters, PTI)

Demonetisation effect: IMF cuts India growth forecast for 2017

India&#39;s chief economic adviser rejected the notion that official data was politically influenced as &quot;utter nonsense&quot;, after surprisingly strong growth in the wake of a government ban on high denomination bank notes caused raised eyebrows among independent analysts.

Speaking to an investment forum in Hong Kong on Wednesday, Arvind Subramanian said India was seeking to improve its methodology, and its data should not draw the same scepticism with which some analysts treat China&#39;s economic data.

&quot;Let me say this categorically to all the investors and I am not batting on behalf of the government here,&quot; he told the annual Credit Suisse Asian Investment Conference in Hong Kong.

Many analysts were surprised that a slowdown in growth during the December quarter was not as bad as they had expected following Prime Minister Narendra Modi&#39;s decision in November to outlaw 500 and 1,000 rupee banknotes in a radical move against tax avoidance and corruption in the cash-reliant economy.

The decision sucked 86 per cent of cash out of circulation, and everyone from street hawkers to big consumer goods firms suffered a slump in sales.

With data on commercial vehicle output, rail freight, service tax receipts and home appliance sales showing slowing growth or contraction, economic expansion in the quarter to December was forecast by economists at 6.4 per cent.

Instead, the official data showed the economy grew 7.0 per cent, enough for India to retain the title of the world&#39;s fastest growing major economy even though it was slower than the 7.4 per cent growth posed for the September quarter.

Getting economic growth up to 8-10 per cent is essential for job generation in India, Subramanian said, adding that boosting private sector investment remains a challenge.

He told the investor conference that there was a need for more direct investment in the manufacturing sector.

New Delhi&#39;s GDP data has been questioned since a change in methodology in 2015 transformed India into the world&#39;s fastest-growing major economy.

The government defended the overhaul, which occurred less than a year after Modi swept to power, citing an improved database covering hundreds of thousands of firms.

Data reporting has long been a challenge in an economy where the informal sector accounts for 40 per cent of output and employs nine in 10 workers.

The IMF expects India to remain one of the fastest growing emerging market economies, forecasting 6.6 per cent growth in the fiscal year ending on March 31, and 7.2 per cent for the coming fiscal year.

(Reuters)

Many analysts were surprised that a slowdown in growth during the December quarter was not as bad as expected following demonetisation

India's chief economic adviser rejected the notion that official data was politically influenced as "utter nonsense", after surprisingly strong growth in the wake of a government ban on high denomination bank notes caused raised eyebrows among independent analysts. Speaking to an investment forum in Hong Kong on Wednesday, Arvind Subramanian said India was seeking to improve its methodology, and its data should not draw the same scepticism with which some analysts treat China's economic data. "Let me say this categorically to all the investors and I am not batting on behalf of the government here," he told the annual Credit Suisse Asian Investment Conference in Hong Kong. Many analysts were surprised that a slowdown in growth during the December quarter was not as bad as they had expected following Prime Minister Narendra Modi's decision in November to outlaw 500 and 1,000 rupee banknotes in a radical move against tax avoidance and corruption in the cash-reliant economy. The decision sucked 86 per cent of cash out of circulation, and everyone from street hawkers to big consumer goods firms suffered a slump in sales. With data on commercial vehicle output, rail freight, service tax receipts and home appliance sales showing slowing growth or contraction, economic expansion in the quarter to December was forecast by economists at 6.4 per cent. Instead, the official data showed the economy grew 7.0 per cent, enough for India to retain the title of the world's fastest growing major economy even though it was slower than the 7.4 per cent growth posed for the September quarter. Getting economic growth up to 8-10 per cent is essential for job generation in India, Subramanian said, adding that boosting private sector investment remains a challenge. He told the investor conference that there was a need for more direct investment in the manufacturing sector. New Delhi's GDP data has been questioned since a change in methodology in 2015 transformed India into the world's fastest-growing major economy. The government defended the overhaul, which occurred less than a year after Modi swept to power, citing an improved database covering hundreds of thousands of firms. Data reporting has long been a challenge in an economy where the informal sector accounts for 40 per cent of output and employs nine in 10 workers. The IMF expects India to remain one of the fastest growing emerging market economies, forecasting 6.6 per cent growth in the fiscal year ending on March 31, and 7.2 per cent for the coming fiscal year. (Reuters)

India's economic data not politically influenced: Chief economic adviser

Financial leaders of the world&#39;s biggest economies dropped a pledge to keep global trade free and open, acquiescing to an increasingly protectionist United States after a two-day meeting failed to yield a compromise.

Breaking a decade-long tradition of endorsing open trade, G20 finance ministers and central bankers made only a token reference to trade in their communique on Saturday, a clear defeat for host nation Germany, which fought the new US government&#39;s attempts to water down past commitments.

In the new US administration&#39;s biggest clash yet with the international community, G20 finance chiefs also removed from their statement a pledge to finance the fight against climate change, an anticipated outcome after US President Donald Trump called global warming a &quot;hoax&quot;.

In a meeting that some said was at times 19 against one, the US&nbsp;did not yield on key issues, essentially torpedoing earlier agreements as the G20 requires a consensus. Still, the dialogue was friendly and non-confrontational, leaving the door open to a future deal, officials who attended the meeting said.

&quot;This is my first G20, so what was in the past communiqu&eacute; is not necessarily relevant from my standpoint,&quot; US Treasury Secretary Steven Mnuchin said in the German resort town of Baden Baden.

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<h5>We believe in free trade, we are in one of the largest markets in the world, we are one of the largest trading partners in the world, trade has been good for us, it has been good for other people,&quot; US treasury secretary Steven Mnuchin said. &#39;Having said that, we want to re-examine certain agreements&#39;</h5>
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&quot;I understand what the president&#39;s desire is and his policies, and I negotiated them from here,&quot; Mnuchin said. &quot;I couldn&rsquo;t be happier with the outcome.&quot;

Seeking to put &quot;America first&quot;, Trump has already pulled out of a key trade agreement and proposed a new tax on imports, arguing that certain trade relationships need to be reworked to make them fairer for US workers.

&quot;We believe in free trade, we are in one of the largest markets in the world, we are one of the largest trading partners in the world, trade has been good for us, it has been good for other people,&quot; Mnuchin said. &quot;Having said that, we want to re-examine certain agreements.&quot;

International trade makes up almost half of global economic output and officials said the issue could be revisited at a meeting of G20 leaders in July.

While some expressed frustration, like French Finance Minister Michel Sapin, others played down the dispute.

&quot;It is not that we were not united,&quot; German finance minister Wolfgang Schaeuble said. &quot;It was totally undisputed that we are against protectionism. But it is not very clear what (protectionism) means to each (minister).&quot;

He added that some ministers did not have a full mandate to negotiate since they were not fully in charge of trade issues.

Others suggested that the G20 leaders&#39; meeting in Hamburg this July could be the real opportunity to bring the US on board.

&quot;It is not the best meeting we had, but we avoided backtracking,&quot; EU Economic Affairs Commissioner Pierre Moscovici said. &quot;I hope in Hamburg the wording will be different. We need it. It is the raison d&rsquo;etre for the G20,&quot; Moscovici said.

Climate Pledge Dropped

The communique also dropped a reference, used by the G20 last year, on the readiness to finance measures against climate change as agreed in Paris in 2015, because of opposition from the United States and Saudi Arabia.

Trump has suggested global warming was a &quot;hoax&quot; concocted by China to hurt US industry and vowed to scrap the Paris climate accord aimed at curbing greenhouse gas emissions.

Trump&#39;s administration on Thursday proposed a 31 per cent cut to the Environmental Protection Agency&#39;s budget as the White House seeks to eliminate climate change programmes and trim initiatives to protect air and water quality.

Asked about climate change funding, Mick Mulvaney, Trump&#39;s budget director, said on Thursday: &quot;We consider that to be a waste of money.&quot;

The G20 did, however, show continuity in its foreign exchange policies, using past phrases on currency markets.

&quot;We reaffirm our previous exchange rate commitments, including that we will refrain from competitive devaluations and we will not target our exchange rates for competitive purposes,&quot; the G20 said.

Leaders also upheld their commitments to financial sector regulation, supporting the finalisation of bank rules known as Basel III, provided they do not significantly raise overall capital requirements.

(Reuters)

Their statement -- they were meeting in Germany -- also dropped the pledge to finance the fight against global warming

Financial leaders of the world's biggest economies dropped a pledge to keep global trade free and open, acquiescing to an increasingly protectionist United States after a two-day meeting failed to yield a compromise. Breaking a decade-long tradition of endorsing open trade, G20 finance ministers and central bankers made only a token reference to trade in their communique on Saturday, a clear defeat for host nation Germany, which fought the new US government's attempts to water down past commitments. In the new US administration's biggest clash yet with the international community, G20 finance chiefs also removed from their statement a pledge to finance the fight against climate change, an anticipated outcome after US President Donald Trump called global warming a "hoax". In a meeting that some said was at times 19 against one, the US did not yield on key issues, essentially torpedoing earlier agreements as the G20 requires a consensus. Still, the dialogue was friendly and non-confrontational, leaving the door open to a future deal, officials who attended the meeting said. "This is my first G20, so what was in the past communiqué is not necessarily relevant from my standpoint," US Treasury Secretary Steven Mnuchin said in the German resort town of Baden Baden. We believe in free trade, we are in one of the largest markets in the world, we are one of the largest trading partners in the world, trade has been good for us, it has been good for other people," US treasury secretary Steven Mnuchin said. 'Having said that, we want to re-examine certain agreements' × "I understand what the president's desire is and his policies, and I negotiated them from here," Mnuchin said. "I couldn’t be happier with the outcome." Seeking to put "America first", Trump has already pulled out of a key trade agreement and proposed a new tax on imports, arguing that certain trade relationships need to be reworked to make them fairer for US workers. "We believe in free trade, we are in one of the largest markets in the world, we are one of the largest trading partners in the world, trade has been good for us, it has been good for other people," Mnuchin said. "Having said that, we want to re-examine certain agreements." International trade makes up almost half of global economic output and officials said the issue could be revisited at a meeting of G20 leaders in July. While some expressed frustration, like French Finance Minister Michel Sapin, others played down the dispute. "It is not that we were not united," German finance minister Wolfgang Schaeuble said. "It was totally undisputed that we are against protectionism. But it is not very clear what (protectionism) means to each (minister)." He added that some ministers did not have a full mandate to negotiate since they were not fully in charge of trade issues. Others suggested that the G20 leaders' meeting in Hamburg this July could be the real opportunity to bring the US on board. "It is not the best meeting we had, but we avoided backtracking," EU Economic Affairs Commissioner Pierre Moscovici said. "I hope in Hamburg the wording will be different. We need it. It is the raison d’etre for the G20," Moscovici said. Climate Pledge Dropped The communique also dropped a reference, used by the G20 last year, on the readiness to finance measures against climate change as agreed in Paris in 2015, because of opposition from the United States and Saudi Arabia. Trump has suggested global warming was a "hoax" concocted by China to hurt US industry and vowed to scrap the Paris climate accord aimed at curbing greenhouse gas emissions. Trump's administration on Thursday proposed a 31 per cent cut to the Environmental Protection Agency's budget as the White House seeks to eliminate climate change programmes and trim initiatives to protect air and water quality. Asked about climate change funding, Mick Mulvaney, Trump's budget director, said on Thursday: "We consider that to be a waste of money." The G20 did, however, show continuity in its foreign exchange policies, using past phrases on currency markets. "We reaffirm our previous exchange rate commitments, including that we will refrain from competitive devaluations and we will not target our exchange rates for competitive purposes," the G20 said. Leaders also upheld their commitments to financial sector regulation, supporting the finalisation of bank rules known as Basel III, provided they do not significantly raise overall capital requirements. (Reuters)

Under US pressure, G20 finance leaders drop pledge to keep trade free & open

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Former International Monetary Fund Chief Rodrigo Rato was sentenced to 4-1/2 years by Spain&#39;s High Court on the grounds of widespread misuse of company credit cards during his tenure at lender Bankia (WION)
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Former International Monetary Fund (IMF) chief Rodrigo Rato was sentenced to four and a half&nbsp;years in prison by Spain&#39;s High Court on Thursday following a scandal over the widespread misuse of company credit cards during his tenure at lender Bankia.

Rato, who was economy minister in Spain and a prominent figure in the ruling People&#39;s Party (PP) before moving to the IMF, chaired Bankia for two years until just before its state bailout in 2012. He had been on trial along with 64 other executives and former board members of Bankia and its founding savings bank Caja Madrid.

The case is one of several high-level corruption investigations now coming to fruition and seen as a test of whether Spain&#39;s rich and powerful are accountable to the law.

Last week, a Spanish court found the king&#39;s brother-in-law guilty of using royal connections to overcharge regional governments through public contracts.

Rato and ex-Caja Madrid Chairman Miguel Blesa, who was sentenced to six years in jail, were convicted of misappropriating funds, the court said in a written ruling.

Rato had denied any wrongdoing, arguing the expenses he accrued on the Bankia credit cards were legal. Neither Blesa&#39;s lawyer, Carlos Aguilar, nor Ratos&#39; lawyer, Ignacio Ayala, responded to requests for comment.

The so-called &quot;black cards&quot; case sparked widespread anger when the scandal first broke in 2014, at a time when Spain was recovering from years of recession, mass layoffs and a banking crisis partly triggered by Bankia&#39;s massive bailout.

The court considered in its ruling both Rato and Blesa responsible for overseeing the misuse of credit cards and said that they could have reversed the practice.

&quot;The defendants Miguel Blesa (...) and Rodrigo de Rato Figaredo were aware of the decision they made to allow business cards to circulate (...) with no legal and statutory support, based, as they said, on a principle of trust, which was not the case,&quot; the court said in its ruling.

The cards were used to buy jewels, holidays and expensive clothes, according to documents filed with the court, but also to fund more mundane purchases such as trips to the cinema.

Before chairing the Washington-based IMF between 2004 and 2007, Rato was deputy prime minister in the conservative PP&#39;s government in 1996.

In total, prosecutors were investigating some 12 million euros in spending on the cards between 2003 and 2012 by the 65 former Bankia executives, including Rato and Blesa.

The court ruling can be appealed before Spain&#39;s Supreme Court.

(Reuters)

This high-level corruption investigation was seen as a test of whether Spain's rich and powerful are actually accountable to the law

Former International Monetary Fund Chief Rodrigo Rato was sentenced to 4-1/2 years by Spain's High Court on the grounds of widespread misuse of company credit cards during his tenure at lender Bankia (WION) × Former International Monetary Fund (IMF) chief Rodrigo Rato was sentenced to four and a half years in prison by Spain's High Court on Thursday following a scandal over the widespread misuse of company credit cards during his tenure at lender Bankia. Rato, who was economy minister in Spain and a prominent figure in the ruling People's Party (PP) before moving to the IMF, chaired Bankia for two years until just before its state bailout in 2012. He had been on trial along with 64 other executives and former board members of Bankia and its founding savings bank Caja Madrid. The case is one of several high-level corruption investigations now coming to fruition and seen as a test of whether Spain's rich and powerful are accountable to the law. Last week, a Spanish court found the king's brother-in-law guilty of using royal connections to overcharge regional governments through public contracts. Rato and ex-Caja Madrid Chairman Miguel Blesa, who was sentenced to six years in jail, were convicted of misappropriating funds, the court said in a written ruling. Rato had denied any wrongdoing, arguing the expenses he accrued on the Bankia credit cards were legal. Neither Blesa's lawyer, Carlos Aguilar, nor Ratos' lawyer, Ignacio Ayala, responded to requests for comment. The so-called "black cards" case sparked widespread anger when the scandal first broke in 2014, at a time when Spain was recovering from years of recession, mass layoffs and a banking crisis partly triggered by Bankia's massive bailout. The court considered in its ruling both Rato and Blesa responsible for overseeing the misuse of credit cards and said that they could have reversed the practice. "The defendants Miguel Blesa (...) and Rodrigo de Rato Figaredo were aware of the decision they made to allow business cards to circulate (...) with no legal and statutory support, based, as they said, on a principle of trust, which was not the case," the court said in its ruling. The cards were used to buy jewels, holidays and expensive clothes, according to documents filed with the court, but also to fund more mundane purchases such as trips to the cinema. Before chairing the Washington-based IMF between 2004 and 2007, Rato was deputy prime minister in the conservative PP's government in 1996. In total, prosecutors were investigating some 12 million euros in spending on the cards between 2003 and 2012 by the 65 former Bankia executives, including Rato and Blesa. The court ruling can be appealed before Spain's Supreme Court. (Reuters)

Former IMF chief Rato sentenced to 4.5 years in jail over widespread misuse of company credit cards

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