The International Monetary Fund (IMF) has granted Argentina a two-month extension for the final review of its $44 billion loan, offering the government additional time to implement reforms. <o:p></o:p>

Reuters cited three sources with knowledge who revealed that the government and IMF officials mutually agreed to defer the last review, initially slated for September, to November. <o:p></o:p>

The extension aims to "ensure that the program delivers on its objectives," with the source emphasising that it does not imply any fresh financing. <o:p></o:p>

This marks the first alteration to the schedule for a loan agreed upon in 2022.<o:p></o:p>

The agreement between Argentina and the IMF comes amid efforts to address the challenges posed by the country's economic situation. <o:p></o:p>

President Javier Milei, who assumed office on December 10, faced delays in the seventh review of the existing program due to the change in leadership. <o:p></o:p>

The IMF's executive board is anticipated to approve the extension and disburse $4.7 billion in funding during a meeting scheduled for Wednesday. <o:p></o:p>

While an IMF spokesperson did not respond immediately to requests for comment, a spokesperson for Argentina's economy ministry confirmed expectations of an IMF board meeting on January 31 to discuss the program.<o:p></o:p>

The extension of the loan review provides Argentina with additional flexibility in deciding the way forward. <o:p></o:p>

"The country could always negotiate a new program before the current loan ends, but now it has more breathing room until the end of the year to decide what it wants to do," Reuters quoted one source as saying. <o:p></o:p>

The extension does not alter the overall quantity of reviews, and the remaining three reviews from May onwards are poised to trigger disbursements totalling approximately $1.9 billion. <o:p></o:p>

The latest staff report is expected to highlight that the current program went "significantly off track," with missed goals such as international reserves accumulation and a reduction in the primary fiscal deficit.<o:p></o:p>

Argentina's economic challenges, particularly in meeting program goals, have been acknowledged by the new administration. <o:p></o:p>

President Milei's ambitious agenda aims to achieve fiscal balance and accumulate $10 billion in net international reserves by the end of 2024. <o:p></o:p>

The IMF expects the country to address issues such as public hearings for energy prices, buyback of government debt held by the central bank, and resolution of external commercial debt. <o:p></o:p>

Economy Minister Luis Caputo recently withdrew major spending reforms from a comprehensive bill in Congress to facilitate approval, citing insufficient support for measures like tax reforms. <o:p></o:p>

The IMF has stressed the need for Argentina to navigate these challenges and meet the specified program goals.<o:p></o:p>

&nbsp;(With inputs from Reuters)<o:p></o:p>

The International Monetary Fund (IMF) has granted Argentina a two-month extension for the final review of its $44 billion loan, offering the government additional time to implement reforms.

The International Monetary Fund (IMF) has granted Argentina a two-month extension for the final review of its $44 billion loan, offering the government additional time to implement reforms. Reuters cited three sources with knowledge who revealed that the government and IMF officials mutually agreed to defer the last review, initially slated for September, to November. The extension aims to "ensure that the program delivers on its objectives," with the source emphasising that it does not imply any fresh financing. This marks the first alteration to the schedule for a loan agreed upon in 2022. The agreement between Argentina and the IMF comes amid efforts to address the challenges posed by the country's economic situation. President Javier Milei, who assumed office on December 10, faced delays in the seventh review of the existing program due to the change in leadership. The IMF's executive board is anticipated to approve the extension and disburse $4.7 billion in funding during a meeting scheduled for Wednesday. While an IMF spokesperson did not respond immediately to requests for comment, a spokesperson for Argentina's economy ministry confirmed expectations of an IMF board meeting on January 31 to discuss the program. The extension of the loan review provides Argentina with additional flexibility in deciding the way forward. "The country could always negotiate a new program before the current loan ends, but now it has more breathing room until the end of the year to decide what it wants to do," Reuters quoted one source as saying. The extension does not alter the overall quantity of reviews, and the remaining three reviews from May onwards are poised to trigger disbursements totalling approximately $1.9 billion. The latest staff report is expected to highlight that the current program went "significantly off track," with missed goals such as international reserves accumulation and a reduction in the primary fiscal deficit. Argentina's economic challenges, particularly in meeting program goals, have been acknowledged by the new administration. President Milei's ambitious agenda aims to achieve fiscal balance and accumulate $10 billion in net international reserves by the end of 2024. The IMF expects the country to address issues such as public hearings for energy prices, buyback of government debt held by the central bank, and resolution of external commercial debt. Economy Minister Luis Caputo recently withdrew major spending reforms from a comprehensive bill in Congress to facilitate approval, citing insufficient support for measures like tax reforms. The IMF has stressed the need for Argentina to navigate these challenges and meet the specified program goals. (With inputs from Reuters)

IMF grants Argentina extension on $44 bn loan review, allowing for further reforms

The Pakistani government is seeking a rollover of a $2 billion loan from China, as the term for safe deposit is expiring next month. According to a report by ARY News on Friday (Jan 26), caretaker Prime Minister Anwaar-ul-Haq Kakar wrote to Beijing, requesting for the loan. Citing sources, the report said that Pakistan formally requested China to roll over its loan, which is expiring on March 23, on the same terms and conditions.

The sources said that Pakistan’s finance ministry is in contact with the Chinese officials for a timely loan rollover. PM Kakar's letter also appreciated Beijing's assistance to Islamabad in&nbsp;easing&nbsp;the burden of foreign payments.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-reopens-border-crossing-with-afghanistan-after-deadlock-over-visa-requirements-683062">Pakistan reopens border crossing with Afghanistan after deadlock over visa requirements</a>

The loan from China comes days after the United Arab Emirates (UAE) rolled over $2 billion for one year to Pakistan, ARY News reported.&nbsp;

Pakistan is going through an economic crisis and will hold its parliamentary election next month.&nbsp;

Last week, Reza Baqir, the former governor of the State Bank of Pakistan said that the International Monetary Fund (IMF) was facing tough choices on how to deal with Pakistan after the election and how to assess the country's debt situation.

Also watch |&nbsp;Pakistan elections: Will Nawaz Sharif get clear majority?

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In July 2023, Pakistan secured a $3 billion loan programme with the IMF in July that helped pull the country back from the brink of a sovereign debt default. However, the programme whihc is&nbsp;a nine-month standby arrangement is set to expire this spring.

Speaking to&nbsp;news agency Reuters on Jan 18, Baqir, head of sovereign advisory services at Alvarez &amp; Marsal, said, "The IMF will have to decide whether to pull the plug on Pakistan or not, and by that I mean it will have to decide about its assessment of debt sustainability."

"That's almost like having it both ways," Baqir said, adding, that investors would be watching whether the IMF would continue to label the debt as sustainable or whether it would offer its support on a debt restructuring as part of a new programme should Pakistan's authorities chose to go down that route.

Pakistan would also be a potential candidate for a "debt-for-nature"-style debt swap, he added pointing to the deadly 2022 floods.&nbsp;

(With inputs from agencies)

The Pakistani government is seeking a rollover of a $2 billion loan from China, as the term for safe deposit is expiring next month. According to a report by ARY News on Friday (Jan 26), caretaker Prime Minister Anwaar-ul-Haq Kakar wrote to Beijing, requesting for the loan.

The Pakistani government is seeking a rollover of a $2 billion loan from China, as the term for safe deposit is expiring next month. According to a report by ARY News on Friday (Jan 26), caretaker Prime Minister Anwaar-ul-Haq Kakar wrote to Beijing, requesting for the loan. Citing sources, the report said that Pakistan formally requested China to roll over its loan, which is expiring on March 23, on the same terms and conditions. The sources said that Pakistan’s finance ministry is in contact with the Chinese officials for a timely loan rollover. PM Kakar's letter also appreciated Beijing's assistance to Islamabad in easing the burden of foreign payments. Also read | Pakistan reopens border crossing with Afghanistan after deadlock over visa requirements The loan from China comes days after the United Arab Emirates (UAE) rolled over $2 billion for one year to Pakistan, ARY News reported. Pakistan is going through an economic crisis and will hold its parliamentary election next month. Last week, Reza Baqir, the former governor of the State Bank of Pakistan said that the International Monetary Fund (IMF) was facing tough choices on how to deal with Pakistan after the election and how to assess the country's debt situation. Also watch | Pakistan elections: Will Nawaz Sharif get clear majority? × In July 2023, Pakistan secured a $3 billion loan programme with the IMF in July that helped pull the country back from the brink of a sovereign debt default. However, the programme whihc is a nine-month standby arrangement is set to expire this spring. Speaking to news agency Reuters on Jan 18, Baqir, head of sovereign advisory services at Alvarez & Marsal, said, "The IMF will have to decide whether to pull the plug on Pakistan or not, and by that I mean it will have to decide about its assessment of debt sustainability." "That's almost like having it both ways," Baqir said, adding, that investors would be watching whether the IMF would continue to label the debt as sustainable or whether it would offer its support on a debt restructuring as part of a new programme should Pakistan's authorities chose to go down that route. Pakistan would also be a potential candidate for a "debt-for-nature"-style debt swap, he added pointing to the deadly 2022 floods. (With inputs from agencies)

Pakistan seeks rollover of $2 billion loan from China: Report

International Monetary Fund's Managing Director, Kristalina Georgieva, has highlighted the dual nature of artificial intelligence (AI) concerning job security globally. <o:p></o:p>

In an interview with Agence France-Presse, Georgieva expressed that AI is anticipated to impact 60 per cent of jobs in advanced economies, with around 40 per cent globally. <o:p></o:p>

Despite the perceived risks, Georgieva emphasised that AI presents a "tremendous opportunity" to enhance productivity levels and fuel global growth.<o:p></o:p>

Job displacement or enhancement: The AI dilemma<o:p></o:p>

Georgieva conveyed the nuanced impact of AI on employment, stating, "Your job may disappear altogether -- not good -- or artificial intelligence may enhance your job, so you actually will be more productive and your income level may go up." <o:p></o:p>

According to a new IMF report, only half of the jobs influenced by AI are expected to face negative consequences, while the remaining half might benefit from increased productivity due to AI integration into the workplace. <o:p></o:p>

The report suggests that higher-skilled jobs are likely to experience a more substantial impact.<o:p></o:p>

AI's uneven effects and global economic landscape<o:p></o:p>

The IMF report indicated that while labour markets in emerging and developing economies might initially experience a smaller impact from AI, they are also less likely to benefit from enhanced productivity gains. <o:p></o:p>

Georgieva stressed the importance of focusing on assisting low-income countries in adapting quickly to seize the opportunities presented by AI. <o:p></o:p>

As the IMF prepares to release updated economic forecasts later this month, Georgieva expressed optimism about the global economy, noting that it is on track to meet previous forecasts but cautioned that challenges remain in achieving a balanced monetary policy.<o:p></o:p>

AI's role in global productivity and challenges ahead<o:p></o:p>

In addressing the global economy's need for increased productivity, Georgieva emphasised the potential role of AI-related productivity boosts. <o:p></o:p>

She noted the continued growth of the global economy at historically subdued levels and expressed the necessity of unlocking productivity for a more favourable global narrative. <o:p></o:p>

Looking ahead, Georgieva predicted a challenging fiscal year in 2024, with countries grappling to address debt burdens from the COVID-19 pandemic and managing depleted buffers. <o:p></o:p>

The IMF's concern lies in the possibility of governments overspending and undermining efforts to combat inflation.<o:p></o:p>

IMF chief's future and institutional accomplishments<o:p></o:p>

Refusing to delve into her future plans, Georgieva, whose term at the IMF concludes this year, emphasised her current commitment to the role. <o:p></o:p>

She acknowledged the privilege of leading the IMF during turbulent times and expressed pride in the institution's resilience. <o:p></o:p>

Georgieva concluded by focusing on her immediate responsibilities, stating, "Let me do what is in front of me right now."<o:p></o:p>

(With inputs from AFP)<o:p></o:p>

International Monetary Fund's Managing Director, Kristalina Georgieva, has highlighted the dual nature of artificial intelligence (AI) concerning job security globally.

International Monetary Fund's Managing Director, Kristalina Georgieva, has highlighted the dual nature of artificial intelligence (AI) concerning job security globally. In an interview with Agence France-Presse, Georgieva expressed that AI is anticipated to impact 60 per cent of jobs in advanced economies, with around 40 per cent globally. Despite the perceived risks, Georgieva emphasised that AI presents a "tremendous opportunity" to enhance productivity levels and fuel global growth. Job displacement or enhancement: The AI dilemma Georgieva conveyed the nuanced impact of AI on employment, stating, "Your job may disappear altogether -- not good -- or artificial intelligence may enhance your job, so you actually will be more productive and your income level may go up." According to a new IMF report, only half of the jobs influenced by AI are expected to face negative consequences, while the remaining half might benefit from increased productivity due to AI integration into the workplace. The report suggests that higher-skilled jobs are likely to experience a more substantial impact. AI's uneven effects and global economic landscape The IMF report indicated that while labour markets in emerging and developing economies might initially experience a smaller impact from AI, they are also less likely to benefit from enhanced productivity gains. Georgieva stressed the importance of focusing on assisting low-income countries in adapting quickly to seize the opportunities presented by AI. As the IMF prepares to release updated economic forecasts later this month, Georgieva expressed optimism about the global economy, noting that it is on track to meet previous forecasts but cautioned that challenges remain in achieving a balanced monetary policy. AI's role in global productivity and challenges ahead In addressing the global economy's need for increased productivity, Georgieva emphasised the potential role of AI-related productivity boosts. She noted the continued growth of the global economy at historically subdued levels and expressed the necessity of unlocking productivity for a more favourable global narrative. Looking ahead, Georgieva predicted a challenging fiscal year in 2024, with countries grappling to address debt burdens from the COVID-19 pandemic and managing depleted buffers. The IMF's concern lies in the possibility of governments overspending and undermining efforts to combat inflation. IMF chief's future and institutional accomplishments Refusing to delve into her future plans, Georgieva, whose term at the IMF concludes this year, emphasised her current commitment to the role. She acknowledged the privilege of leading the IMF during turbulent times and expressed pride in the institution's resilience. Georgieva concluded by focusing on her immediate responsibilities, stating, "Let me do what is in front of me right now." (With inputs from AFP)

IMF chief acknowledges AI job risks but highlights 'tremendous opportunity'

A united nations report is predicting a marked slowdown in growth for 2024. After a surprisingly strong 2023, the international outlook is shifting, with headwinds from rising debt, slowing trade, and geopolitical tensions posing significant challenges.

UN Report: Trade, debt, geopolitics cast shadow on outlook

The Indian government has strongly refuted the International Monetary Fund's claim that india is vulnerable to rising debt. It said that the IMF has made certain presumptions, which do not reflect the factual position.

Govt refutes IMF's claim that India is vulnerable to rising debt

The International Monetary Fund (IMF) has issued a cautionary note, warning that India's general government debt could surpass 100 per cent of the gross domestic product (GDP) in the medium term, the Business Standard reported.&nbsp;

This alert, highlighted in the annual Article IV consultation report, emphasises the need for new financing sources, greater private sector investment, and climate-resilience measures. The IMF points out that substantial investment is required to enhance India's capacity to withstand climate stresses and natural disasters.&nbsp;

Government's Response and Disagreement &nbsp;

In response, the Indian government has asserted that sovereign debt risks are limited as it is primarily denominated in domestic currency. K.V. Subramanian, India's executive director at the IMF, challenged the IMF's claim, stating that despite historical shocks, India's public debt-to-GDP ratio has shown minimal fluctuations. The disagreement centres on the IMF's reclassification of India's exchange rate regime to a "stabilised arrangement".

IMF's Optimistic Outlook and Fiscal Consolidation&nbsp;

Despite the debt concerns, the IMF offers an optimistic outlook for India's economy in its Article IV report, projecting the potential for faster growth if key structural reforms are implemented. The report stresses the necessity for "ambitious" fiscal consolidation to curb public debt. It also outlines potential challenges, including global growth slowdown, commodity price volatility, and domestic weather shocks. The IMF underscored the impact of consumer demand and private investment on growth.&nbsp;

Steps to Tackle Public Debt&nbsp;

In October 2023, Finance Minister Nirmala Sitharaman revealed the government's commitment to exploring measures to reduce government debt. According to a report by Mint, the central government's debt, as of March 2023, stood at Rs 155.6 trillion, constituting 57.1 per cent of GDP. India faces challenges in enhancing credit ratings due to elevated debt levels and the heavy cost associated with servicing that debt. Despite being considered a 'bright spot' in the global economy, India grapples with challenges affecting sovereign investment ratings.&nbsp;

Challenges and the Rating Agencies' Perspective&nbsp;

The Economic Times reported that global rating agencies, including Fitch, S&amp;P, and Moody's, have accorded India the lowest investment-grade rating, citing concerns over weak fiscal performance, burdensome debt stock, and low GDP per capita. The 'K-shaped' growth phenomenon, exacerbated by the Covid-19 pandemic, has contributed to uneven income distribution, impacting India's sovereign rating. Experts contend that the quality of government expenditure improvement could positively influence economic growth.&nbsp;

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The International Monetary Fund (IMF) has issued a cautionary note, warning that India's general government debt could surpass 100 per cent of the gross domestic product (GDP) in the medium term, the Business Standard reported.

The International Monetary Fund (IMF) has issued a cautionary note, warning that India's general government debt could surpass 100 per cent of the gross domestic product (GDP) in the medium term, the Business Standard reported. This alert, highlighted in the annual Article IV consultation report, emphasises the need for new financing sources, greater private sector investment, and climate-resilience measures. The IMF points out that substantial investment is required to enhance India's capacity to withstand climate stresses and natural disasters. Government's Response and Disagreement In response, the Indian government has asserted that sovereign debt risks are limited as it is primarily denominated in domestic currency. K.V. Subramanian, India's executive director at the IMF, challenged the IMF's claim, stating that despite historical shocks, India's public debt-to-GDP ratio has shown minimal fluctuations. The disagreement centres on the IMF's reclassification of India's exchange rate regime to a "stabilised arrangement". IMF's Optimistic Outlook and Fiscal Consolidation Despite the debt concerns, the IMF offers an optimistic outlook for India's economy in its Article IV report, projecting the potential for faster growth if key structural reforms are implemented. The report stresses the necessity for "ambitious" fiscal consolidation to curb public debt. It also outlines potential challenges, including global growth slowdown, commodity price volatility, and domestic weather shocks. The IMF underscored the impact of consumer demand and private investment on growth. Steps to Tackle Public Debt In October 2023, Finance Minister Nirmala Sitharaman revealed the government's commitment to exploring measures to reduce government debt. According to a report by Mint, the central government's debt, as of March 2023, stood at Rs 155.6 trillion, constituting 57.1 per cent of GDP. India faces challenges in enhancing credit ratings due to elevated debt levels and the heavy cost associated with servicing that debt. Despite being considered a 'bright spot' in the global economy, India grapples with challenges affecting sovereign investment ratings. Challenges and the Rating Agencies' Perspective The Economic Times reported that global rating agencies, including Fitch, S&P, and Moody's, have accorded India the lowest investment-grade rating, citing concerns over weak fiscal performance, burdensome debt stock, and low GDP per capita. The 'K-shaped' growth phenomenon, exacerbated by the Covid-19 pandemic, has contributed to uneven income distribution, impacting India's sovereign rating. Experts contend that the quality of government expenditure improvement could positively influence economic growth. WATCH WION LIVE HERE

IMF sounds alarm on India's rising debt, warns of exceeding 100pc of GDP 

India hits out against the International Monetary Fund (IMF) for claiming that the central bank had interfered excessively in the foreign exchange market.

IMF says India's currency intervention 'excessive'

India hits out against the International Monetary Fund (IMF) for claiming that the central bank had interfered "excessively" in the foreign exchange market.

The IMF's report suggested that the Indian government was attempting to manipulate the value of the rupee.

What does the IMF's report show?

The Washington-based lender said that between December 2022 and October 2023, the rupee's value fluctuated within an extremely small range.

The report indicates that the central bank's involvement "likely exceeded levels necessary to address disorderly market conditions."

As a result, the IMF stated that it has reclassified India's foreign currency regime from a "floating" system to a "stabilised arrangement."

What's the difference?

In a floating system - a currency's value is determined by the foreign exchange market based on the demand and supply of the particular currency.

In contrast, in a stabilised arrangement or a fixed regime, a country's government, through its central bank, determines the currency rate.

But top Reserve Bank of India (RBI) officials have repeatedly stated that the bank intervenes in the currency market only to reduce volatility.

In reality, no country sits back and watches its currency take a roller-coaster ride. Almost every central bank intervenes.

How can they not? It's a question of economic stability and reducing the currency's volatility.

India's response

The IMF said India referred to the evaluation as "unjustified" and "strongly disagreed" with its report.

In its report, the Fund said: "The RBI strongly believes that such a view is incorrect as, in their view, it uses data selectively."

In 2022, the currency fell about 8%.

Between December 2022 and October 2023, the rupee lost around 2% against the US dollar.

However, the RBI rejected the IMF's assessment, calling the evaluation based on selective data sets referring to the Fund's report from December 2022 to October 2023.

The RBI said that the IMF is using data selectively.

India's central bank said that if the rupee's movement over two to five years is considered, then the assessment and allegation fall flat.

Forex reserves&nbsp;show a different story

Bloomberg estimates the RBI intervened in the currency market to the tune of $78 billion through those nine months.

Still, the nation's $604 billion foreign exchange reserves tell a different story.

Despite the intervention, India's import cover hovers close to 2021's all-time high of $642.5 billion.

IMF's outlook is not all bad

The IMF called India a bright spot in an otherwise gloomy global economic background.

However, the IMF's outlook must catch up with the RBI's growth projections for this year and next.

Still, the IMF predicts India will contribute more than 16 per cent of global growth.

The Fund said that was a result of economic changes in important areas like infrastructure and digitalisation, which have elevated India to a "star performer" among nations.

In addition, the IMF said in its annual report that attention be paid to restoring fiscal buffers, ensuring price stability, upholding financial stability, and boosting inclusive growth.

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India hits out against the International Monetary Fund (IMF) for claiming that the central bank had interfered "excessively" in the foreign exchange market. The IMF's report suggested that the Indian government was attempting to manipulate the value of the rupee.

India hits out against the International Monetary Fund (IMF) for claiming that the central bank had interfered "excessively" in the foreign exchange market. The IMF's report suggested that the Indian government was attempting to manipulate the value of the rupee. What does the IMF's report show? The Washington-based lender said that between December 2022 and October 2023, the rupee's value fluctuated within an extremely small range. The report indicates that the central bank's involvement "likely exceeded levels necessary to address disorderly market conditions." As a result, the IMF stated that it has reclassified India's foreign currency regime from a "floating" system to a "stabilised arrangement." What's the difference? In a floating system - a currency's value is determined by the foreign exchange market based on the demand and supply of the particular currency. In contrast, in a stabilised arrangement or a fixed regime, a country's government, through its central bank, determines the currency rate. But top Reserve Bank of India (RBI) officials have repeatedly stated that the bank intervenes in the currency market only to reduce volatility. In reality, no country sits back and watches its currency take a roller-coaster ride. Almost every central bank intervenes. How can they not? It's a question of economic stability and reducing the currency's volatility. India's response The IMF said India referred to the evaluation as "unjustified" and "strongly disagreed" with its report. In its report, the Fund said: "The RBI strongly believes that such a view is incorrect as, in their view, it uses data selectively." In 2022, the currency fell about 8%. Between December 2022 and October 2023, the rupee lost around 2% against the US dollar. However, the RBI rejected the IMF's assessment, calling the evaluation based on selective data sets referring to the Fund's report from December 2022 to October 2023. The RBI said that the IMF is using data selectively. India's central bank said that if the rupee's movement over two to five years is considered, then the assessment and allegation fall flat. Forex reserves show a different story Bloomberg estimates the RBI intervened in the currency market to the tune of $78 billion through those nine months. Still, the nation's $604 billion foreign exchange reserves tell a different story. Despite the intervention, India's import cover hovers close to 2021's all-time high of $642.5 billion. IMF's outlook is not all bad The IMF called India a bright spot in an otherwise gloomy global economic background. However, the IMF's outlook must catch up with the RBI's growth projections for this year and next. Still, the IMF predicts India will contribute more than 16 per cent of global growth. The Fund said that was a result of economic changes in important areas like infrastructure and digitalisation, which have elevated India to a "star performer" among nations. In addition, the IMF said in its annual report that attention be paid to restoring fiscal buffers, ensuring price stability, upholding financial stability, and boosting inclusive growth. WATCH WION LIVE HERE

India hits out at IMF on "excessive" currency intervention comment

Is India's growth story not sitting well with the International Monetary Fund? The IMF has reclassified India's foreign exchange regime as 'stabilized arrangement' from 'floating system', after accusing the RBI of excessive interference. Was the IMF assessment in bad taste?

Gravitas: Is India's growth story not sitting well with IMF?

The International Monetary Fund (IMF) has lauded India's stellar economic performance, projecting the nation to contribute more than 16 per cent to global growth, thanks to robust growth fuelled by key reforms in digitisation and infrastructure. <o:p></o:p>

Nada Choueiri, the Mission of India at IMF, highlighted India's progress in an exclusive interview with PTI. She emphasised that India stands out among its peer countries as one of the fastest-growing large emerging markets, stating, "It's one of the fastest-growing large emerging markets and it's contributing, in our current projections, more than 16 per cent of global growth this year."<o:p></o:p>

The IMF's annual Article IV consultation with India, released on Monday, affirms the country's trajectory as one of the fastest-growing major economies globally. Despite facing global headwinds, including a slowdown in a fragmented world, India's prudent macroeconomic policies continue to drive its economic momentum.<o:p></o:p>

Choueiri underscored the government's commitment to infrastructure development, citing it as a crucial foundation for sustained growth. She noted India's sizable, young, and growing population, emphasising the potential for even stronger growth if harnessed through strategic structural reforms.<o:p></o:p>

Digitalisation stands out as a flagship reform, building a strong platform for increased productivity and future growth. The IMF's annual report recommends focusing on policy priorities such as replenishing fiscal buffers, ensuring price stability, maintaining financial stability, and fostering inclusive growth through comprehensive structural reforms while preserving debt sustainability.<o:p></o:p>

India's rebound from the pandemic has positioned it as a vital driver of global growth. Headline inflation, after a surge in FY2022-23, has moderated, and employment has surpassed pre-pandemic levels. The informal sector dominates, but formalisation is progressing, reflecting a resilient financial sector largely unaffected by global financial stress.<o:p></o:p>

The report also highlights India's hosting of the G20 presidency in 2023, showcasing the nation's role in advancing multilateral policy priorities on the global stage. According to the report, "Globally, India's 2023 G20 presidency has demonstrated the country's important role in advancing multilateral policy priorities."<o:p></o:p>

As the country prepares for general elections in April 2024, the IMF report notes that India has the potential for higher growth with additional labour and human capital, provided comprehensive reforms are implemented.<o:p></o:p>

Choueiri stressed the importance of political stability for investment and growth, citing research that underscores the need for a transparent and stable policy environment. The government's efforts to encourage the business environment, including the single national window, have been acknowledged, but there is still work to be done to streamline bureaucracy in some states. S<o:p></o:p>

he remarked, "It's a glass half full, they're still important procedures that are needed to simplify further. But there are important steps that were taken. For example, the single national window, the one-stop shop for companies is a very important one. But still, in many states, there's a lot of bureaucracy that needs to be tackled and streamlined and a lot of red tape. So this is also a work in progress that needs to be continued."<o:p></o:p>

The IMF advocates for labour reform in India, pointing out the abundance of untapped labour potential that needs concerted efforts in education, skilling, and increasing female labour force participation. Choueiri expressed the view, "India has in abundance labour. And Labour is not used to its potential in India. And so, in our view, there has to be a very concerted effort to make sure that the advantages and demographics in India are played up to the maximum.”<o:p></o:p>

Addressing risks, Choueiri mentioned the tricky external environment and the potential medium-term risks from climate change. She emphasized the need for proper management of these risks to ensure India's continued success. She cautioned that India was performing well and had tremendous potential, adding that several important policies needed to be addressed to harness that potential.<o:p></o:p>

(With inputs from PTI)<o:p></o:p>

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The International Monetary Fund (IMF) has lauded India's stellar economic performance, projecting the nation to contribute more than 16 per cent to global growth, thanks to robust growth fuelled by key reforms in digitisation and infrastructure.

The International Monetary Fund (IMF) has lauded India's stellar economic performance, projecting the nation to contribute more than 16 per cent to global growth, thanks to robust growth fuelled by key reforms in digitisation and infrastructure. Nada Choueiri, the Mission of India at IMF, highlighted India's progress in an exclusive interview with PTI. She emphasised that India stands out among its peer countries as one of the fastest-growing large emerging markets, stating, "It's one of the fastest-growing large emerging markets and it's contributing, in our current projections, more than 16 per cent of global growth this year." The IMF's annual Article IV consultation with India, released on Monday, affirms the country's trajectory as one of the fastest-growing major economies globally. Despite facing global headwinds, including a slowdown in a fragmented world, India's prudent macroeconomic policies continue to drive its economic momentum. Choueiri underscored the government's commitment to infrastructure development, citing it as a crucial foundation for sustained growth. She noted India's sizable, young, and growing population, emphasising the potential for even stronger growth if harnessed through strategic structural reforms. Digitalisation stands out as a flagship reform, building a strong platform for increased productivity and future growth. The IMF's annual report recommends focusing on policy priorities such as replenishing fiscal buffers, ensuring price stability, maintaining financial stability, and fostering inclusive growth through comprehensive structural reforms while preserving debt sustainability. India's rebound from the pandemic has positioned it as a vital driver of global growth. Headline inflation, after a surge in FY2022-23, has moderated, and employment has surpassed pre-pandemic levels. The informal sector dominates, but formalisation is progressing, reflecting a resilient financial sector largely unaffected by global financial stress. The report also highlights India's hosting of the G20 presidency in 2023, showcasing the nation's role in advancing multilateral policy priorities on the global stage. According to the report, "Globally, India's 2023 G20 presidency has demonstrated the country's important role in advancing multilateral policy priorities." As the country prepares for general elections in April 2024, the IMF report notes that India has the potential for higher growth with additional labour and human capital, provided comprehensive reforms are implemented. Choueiri stressed the importance of political stability for investment and growth, citing research that underscores the need for a transparent and stable policy environment. The government's efforts to encourage the business environment, including the single national window, have been acknowledged, but there is still work to be done to streamline bureaucracy in some states. S he remarked, "It's a glass half full, they're still important procedures that are needed to simplify further. But there are important steps that were taken. For example, the single national window, the one-stop shop for companies is a very important one. But still, in many states, there's a lot of bureaucracy that needs to be tackled and streamlined and a lot of red tape. So this is also a work in progress that needs to be continued." The IMF advocates for labour reform in India, pointing out the abundance of untapped labour potential that needs concerted efforts in education, skilling, and increasing female labour force participation. Choueiri expressed the view, "India has in abundance labour. And Labour is not used to its potential in India. And so, in our view, there has to be a very concerted effort to make sure that the advantages and demographics in India are played up to the maximum.” Addressing risks, Choueiri mentioned the tricky external environment and the potential medium-term risks from climate change. She emphasized the need for proper management of these risks to ensure India's continued success. She cautioned that India was performing well and had tremendous potential, adding that several important policies needed to be addressed to harness that potential. (With inputs from PTI) WATCH WION LIVE HERE

India contributes over 16% to global growth, IMF report reveals strong economic performance

WION's Business Desk brings you this daily round-up of global stories from the world of business and economy.<o:p></o:p>

India contributes over 16pc to global growth, IMF report reveals strong economic performance<o:p></o:p>

India's strong economic performance has been lauded by the International Monetary Fund (IMF), which has projected that the country will contribute more than 16 per cent to global growth as a result of significant infrastructure and digitalisation reforms.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/india-contributes-over-16pc-to-global-growth-imf-report-reveals-strong-economic-performance-671140">Read more here</a><o:p></o:p>

EU launches first probe under Digital Services Act, targets X over suspected violations<o:p></o:p>

Under the Digital Services Act (DSA), the European Union (EU) has launched its first inquiry, targeting social media behemoth X for alleged breaches, mostly pertaining to posts made in the wake of Hamas's attacks on Israel.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/eu-launches-first-probe-under-digital-services-act-targets-x-over-suspected-violations-671151">Read more here</a><o:p></o:p>

Red Sea attacks disrupt global shipping: Coalition forming to tackle threat<o:p></o:p>

The United States is working quickly to form a coalition to counter the growing threat posed by recent attacks on ships in the Red Sea by Houthi insurgents from Yemen affiliated with Iran.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/red-sea-attacks-disrupt-global-shipping-coalition-forming-to-tackle-threat-671164">Read more here</a><o:p></o:p>

Rupiah faces testing times as Indonesia gears up for elections<o:p></o:p>

The strength of the rupiah is being closely watched as Indonesia gets ready for its national elections in February 2024; experts see a possible downward trend in the value of the currency.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/rupiah-faces-testing-times-as-indonesia-gears-up-for-elections-671201">Read more here</a><o:p></o:p>

India leads global remittance surge with projected 23pc increase to $125 bn in 2023<o:p></o:p>

As per the World Bank's latest Migration and Development Brief, India is expected to become the world's largest recipient of remittances in 2023, with an expected increase of more than 11 per cent, culminating in $125 billion.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/india-leads-global-remittance-surge-with-projected-23pc-increase-to-125-bn-in-2023-671207">Read more here</a><o:p></o:p>

Turkey saves billions on Russian oil amid sanctions, boosting imports<o:p></o:p>

Turkey and Turkish businesses were able to dramatically increase imports of Russian oil and refined goods in 2023, saving them almost $2 billion in energy costs.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/turkey-saves-billions-on-russian-oil-amid-sanctions-boosting-imports-671228">Read more here</a><o:p></o:p>

UPI transactions skyrocket, marking a 147pc surge in five years: Government Reports<o:p></o:p>

The Unified Payments Interface (UPI) has become the driving force behind an increase in digital payments, resulting in a 7.8 per cent growth in banknotes in circulation during the most recent fiscal year.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/upi-transactions-skyrocket-marking-a-147pc-surge-in-five-years-government-reports-671247">Read more here</a><o:p></o:p>

Apple halts US sales of Series 9 and Ultra 2 smartwatches amid patent dispute<o:p></o:p>

Apple has announced the temporary suspension of sales for its Series 9 and Ultra 2 smartwatches in the United States due to a legal issue that affects the blood oxygen feature.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/apple-halts-us-sales-of-series-9-and-ultra-2-smartwatches-amid-patent-dispute-671263">Read more here</a><o:p></o:p>

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WION's Business Desk brings you this daily round-up of global stories from the world of business and economy. India contributes over 16pc to global growth, IMF report reveals strong economic performance India's strong economic performance has been lauded by the International Monetary Fund (IMF), which has projected that the country will contribute more than 16 per cent to global growth as a result of significant infrastructure and digitalisation reforms.

WION's Business Desk brings you this daily round-up of global stories from the world of business and economy. India contributes over 16pc to global growth, IMF report reveals strong economic performance India's strong economic performance has been lauded by the International Monetary Fund (IMF), which has projected that the country will contribute more than 16 per cent to global growth as a result of significant infrastructure and digitalisation reforms. Read more here EU launches first probe under Digital Services Act, targets X over suspected violations Under the Digital Services Act (DSA), the European Union (EU) has launched its first inquiry, targeting social media behemoth X for alleged breaches, mostly pertaining to posts made in the wake of Hamas's attacks on Israel. Read more here Red Sea attacks disrupt global shipping: Coalition forming to tackle threat The United States is working quickly to form a coalition to counter the growing threat posed by recent attacks on ships in the Red Sea by Houthi insurgents from Yemen affiliated with Iran. Read more here Rupiah faces testing times as Indonesia gears up for elections The strength of the rupiah is being closely watched as Indonesia gets ready for its national elections in February 2024; experts see a possible downward trend in the value of the currency. Read more here India leads global remittance surge with projected 23pc increase to $125 bn in 2023 As per the World Bank's latest Migration and Development Brief, India is expected to become the world's largest recipient of remittances in 2023, with an expected increase of more than 11 per cent, culminating in $125 billion. Read more here Turkey saves billions on Russian oil amid sanctions, boosting imports Turkey and Turkish businesses were able to dramatically increase imports of Russian oil and refined goods in 2023, saving them almost $2 billion in energy costs. Read more here UPI transactions skyrocket, marking a 147pc surge in five years: Government Reports The Unified Payments Interface (UPI) has become the driving force behind an increase in digital payments, resulting in a 7.8 per cent growth in banknotes in circulation during the most recent fiscal year. Read more here Apple halts US sales of Series 9 and Ultra 2 smartwatches amid patent dispute Apple has announced the temporary suspension of sales for its Series 9 and Ultra 2 smartwatches in the United States due to a legal issue that affects the blood oxygen feature. Read more here WATCH WION LIVE HERE

WION Business Wrap | India’s 16pc contribution to global growth, EU’s probe on X, Red sea attacks & more

KV Subramanian, Executive Director of the International Monetary Fund (IMF) and former Chief Economic Advisor to the Government of India, voiced optimism in response to former RBI Governor Raghuram Rajan's remarks regarding India's GDP growth.

IMF predicts 6.3% growth for India, advocates reforms for India's growth

There is some good news for Bangladesh struggling with surging inflation, falling import cover and a weak currency ahead of the country's January elections. The international monetary fund's board approved its first review of Bangladesh's $4.7 billion bailout package. Dhaka will get $689.8 million in funds to combat its economic crisis.

IMF approves bailout of Bangladesh | World Business Watch

Gita Gopinath, a senior International Monetary Fund (IMF) official warned during a speech in Colombia on Monday (Dec 11), that the world economy is on the brink of a second cold war, which could "annihilate" progress made since the collapse of the Soviet Union.&nbsp;

The IMF's first deputy managing director also said that the fragmentation in the global economy into power blocs, such as China the United States and Russia, could impact global output and wipe out trillions of dollars.&nbsp;

She said that the clear shifts in underlying bilateral trade because of all these factors could result in a "new Cold War".&nbsp;

Notably, the Cold War was a period of geopolitical tension between the US and the Soviet Union, as well as their respective allies, between 1945 and 1991.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/world/un-marks-75-years-of-human-rights-declaration-in-shadow-of-gaza-668644">UN marks 75 years of human rights declaration in shadow of Gaza war</a>&nbsp;

"If we descend into Cold War II, knowing the costs, we may not see mutually assured economic destruction. But we could see an annihilation of the gains from open trade," told the International Economic Association in Medellin, Colombia.&nbsp;

She said that losses could reach 2.5 per cent to seven per cent of global gross domestic product if the world economy fragmented into two blocs.&nbsp;

"While there are no signs of broad-based retreat from globalisation, fault lines are emerging as geoeconomic fragmentation is increasingly a reality. If fragmentation deepens, we could find ourselves in a new Cold War," she said.&nbsp;

As she warned the world, she urged the leaders to pull back from the brink and work towards shared economic priorities.&nbsp;

Her remarks came amid the ongoing war between Russia and Ukraine, the war between Israel and Hamas, existing tensions between the US and China, and other conflicts which resulted in a slowdown in international trade.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/world/zelensky-arrives-in-us-for-last-ditch-effort-for-more-aid-668663">Zelensky arrives in US for last-ditch effort for more aid</a>&nbsp;

"While there are no signs of broad-based retreat from globalisation, fault lines are emerging as geoeconomic fragmentation is increasingly a reality. If fragmentation deepens, we could find ourselves in a new cold war," she said.&nbsp;

A Reuters report mentioned that China is no longer the largest US trading partner, with Mexico having assumed that role after years of increasing trade tensions and rising tariffs.&nbsp;

China's share of US imports fell to 13 per cent in the first half of 2023 from 22 per cent in 2018. Around 3,000 trade-restrictive measures were imposed last year around the world - nearly three times the number imposed in 2019.&nbsp;

Watch: China encroaches into Bhutanese territory

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<h2>'The costs could easily overwhelm benefits'&nbsp;</h2>

She said that such fragmentation has potentially serious consequences that could outweigh greater domestic economic resiliency and security.&nbsp;

Gopinath added, "If not properly managed, the costs could easily overwhelm these benefits, and potentially reverse nearly three decades of peace, integration, and growth that helped lift billions out of poverty."&nbsp;

She said that the global fragmentation will make it harder to address common concerns such as climate change, and she urged governments to adopt "pragmatic" policies that preserve the benefits of free trade to the greatest extent possible.&nbsp;

(With inputs from agencies)

Gita Gopinath, a senior International Monetary Fund (IMF) official warned during a speech in Colombia on Monday (Dec 11), that the world economy is on the brink of a second cold war, which could "annihilate" progress made since the collapse of the Soviet Union.

Gita Gopinath, a senior International Monetary Fund (IMF) official warned during a speech in Colombia on Monday (Dec 11), that the world economy is on the brink of a second cold war, which could "annihilate" progress made since the collapse of the Soviet Union. The IMF's first deputy managing director also said that the fragmentation in the global economy into power blocs, such as China the United States and Russia, could impact global output and wipe out trillions of dollars. She said that the clear shifts in underlying bilateral trade because of all these factors could result in a "new Cold War". Notably, the Cold War was a period of geopolitical tension between the US and the Soviet Union, as well as their respective allies, between 1945 and 1991. Also read: UN marks 75 years of human rights declaration in shadow of Gaza war "If we descend into Cold War II, knowing the costs, we may not see mutually assured economic destruction. But we could see an annihilation of the gains from open trade," told the International Economic Association in Medellin, Colombia. She said that losses could reach 2.5 per cent to seven per cent of global gross domestic product if the world economy fragmented into two blocs. "While there are no signs of broad-based retreat from globalisation, fault lines are emerging as geoeconomic fragmentation is increasingly a reality. If fragmentation deepens, we could find ourselves in a new Cold War," she said. As she warned the world, she urged the leaders to pull back from the brink and work towards shared economic priorities. Her remarks came amid the ongoing war between Russia and Ukraine, the war between Israel and Hamas, existing tensions between the US and China, and other conflicts which resulted in a slowdown in international trade. Also read: Zelensky arrives in US for last-ditch effort for more aid "While there are no signs of broad-based retreat from globalisation, fault lines are emerging as geoeconomic fragmentation is increasingly a reality. If fragmentation deepens, we could find ourselves in a new cold war," she said. A Reuters report mentioned that China is no longer the largest US trading partner, with Mexico having assumed that role after years of increasing trade tensions and rising tariffs. China's share of US imports fell to 13 per cent in the first half of 2023 from 22 per cent in 2018. Around 3,000 trade-restrictive measures were imposed last year around the world - nearly three times the number imposed in 2019. Watch: China encroaches into Bhutanese territory × 'The costs could easily overwhelm benefits' She said that such fragmentation has potentially serious consequences that could outweigh greater domestic economic resiliency and security. Gopinath added, "If not properly managed, the costs could easily overwhelm these benefits, and potentially reverse nearly three decades of peace, integration, and growth that helped lift billions out of poverty." She said that the global fragmentation will make it harder to address common concerns such as climate change, and she urged governments to adopt "pragmatic" policies that preserve the benefits of free trade to the greatest extent possible. (With inputs from agencies)

Senior IMF official warns fragmentation in global economy could trigger 'new Cold War'

Zelensky is all set to embark on his third visit to Washington since the war in Ukraine began. He last visited in September. Aid for Ukraine in its effort to ward off Russia will be a prime agenda here, but will Zelensky be able to navigate his way around the divisions in the U.S. leaders on continuing the aid for Ukraine?

US: Zelensky arrives in US; meets with IMF, military officers & lawmakers in bid to unlock aid

The International Monetary Fund has expressed strong interest in bolstering Argentina's recovery, as President-elect Javier Milei engages in crucial talks with the IMF and high-profile meetings in Washington. With Argentina's inflation surpassing 140% and net reserves in a precarious state, the IMF's Chief, Kristalina Georgieva, aims to discuss strategies to enhance the nation's resilience.

Argentina's economic challenges and the role of the IMF | World Business Watch

IMF chief Kristalina Georgieva has urged countries to make a more proactive push to develop central bank digital currencies or CBDCs. Georgieva made her remarks as the IMF published the first instalment of a "Virtual handbook" on CBDCs, which has been created to help countries with the design and set-up process and ensure that the new technologies are globally interoperable.

IMF's thumbs up to digital currencies

Pakistan has achieved a crucial milestone in its economic recovery journey, securing initial approval from the International Monetary Fund (IMF) for the release of the next loan tranche from a $3 billion bailout program. &nbsp;

According to a Bloomberg report, the announcement came as the Washington-based lender revealed a staff-level agreement, signalling a green light for Pakistan to access a payout of approximately $700 million, contingent on approval from the IMF’s executive board. The funding is deemed essential for Pakistan to avoid defaulting on debt obligations as the government intensifies efforts to rectify economic imbalances, such as adjusting gas prices and combating the illicit dollar trade. &nbsp;

According to Bloomberg, IMF Managing Director Kristalina Georgieva commended Pakistan’s commitment to the program. She mentioned that the authorities, particularly the finance minister, deserved credit for navigating a very challenging period and adhering to the program they had in place.

The IMF's financial support is viewed as a catalyst for Pakistan's fiscal recovery, generating optimism among investors and resulting in a more than 50 per cent return on its dollar bonds this year. The KSE-100 Index, Pakistan's benchmark equity gauge, has stood out as one of the top performers globally since the IMF deal in July. &nbsp;

The positive market sentiment underscores the potential impact of the IMF program on Pakistan's economic trajectory. Dollar bonds due April 2031 held steady at about 49 cents on the dollar in early Asian trading on Thursday, reflecting the market's measured response to the news. However, the financial landscape remains intricate, with risks looming, including inflationary pressures and dependence on external financing from creditors, particularly countries in the Middle East.&nbsp;

Given the financing risks and the impending election, Goldman Sachs Group Inc. issued a warning in October that the strength of the Pakistani rupee would not last.&nbsp;

While a nascent economic recovery is underway, the IMF team, led by Nathan Porter, has cautioned that Pakistan remains exposed to "significant external risks." The team's endorsement of the staff-level agreement acknowledges the progress made by Pakistan in adhering to the conditions of the IMF program. &nbsp;

(With inputs from Bloomberg)&nbsp;

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Pakistan has achieved a crucial milestone in its economic recovery journey, securing initial approval from the International Monetary Fund (IMF) for the release of the next loan tranche from a $3 billion bailout program.

Pakistan has achieved a crucial milestone in its economic recovery journey, securing initial approval from the International Monetary Fund (IMF) for the release of the next loan tranche from a $3 billion bailout program. According to a Bloomberg report, the announcement came as the Washington-based lender revealed a staff-level agreement, signalling a green light for Pakistan to access a payout of approximately $700 million, contingent on approval from the IMF’s executive board. The funding is deemed essential for Pakistan to avoid defaulting on debt obligations as the government intensifies efforts to rectify economic imbalances, such as adjusting gas prices and combating the illicit dollar trade. According to Bloomberg, IMF Managing Director Kristalina Georgieva commended Pakistan’s commitment to the program. She mentioned that the authorities, particularly the finance minister, deserved credit for navigating a very challenging period and adhering to the program they had in place. The IMF's financial support is viewed as a catalyst for Pakistan's fiscal recovery, generating optimism among investors and resulting in a more than 50 per cent return on its dollar bonds this year. The KSE-100 Index, Pakistan's benchmark equity gauge, has stood out as one of the top performers globally since the IMF deal in July. The positive market sentiment underscores the potential impact of the IMF program on Pakistan's economic trajectory. Dollar bonds due April 2031 held steady at about 49 cents on the dollar in early Asian trading on Thursday, reflecting the market's measured response to the news. However, the financial landscape remains intricate, with risks looming, including inflationary pressures and dependence on external financing from creditors, particularly countries in the Middle East. Given the financing risks and the impending election, Goldman Sachs Group Inc. issued a warning in October that the strength of the Pakistani rupee would not last. While a nascent economic recovery is underway, the IMF team, led by Nathan Porter, has cautioned that Pakistan remains exposed to "significant external risks." The team's endorsement of the staff-level agreement acknowledges the progress made by Pakistan in adhering to the conditions of the IMF program. (With inputs from Bloomberg) WATCH WION LIVE HERE

Pakistan clinches initial IMF approval, eyes $700 million boost for fiscal stability 

Pakistan is set to receive a $700 million boost from the International Monetary Fund for economic revival. The IMF has reached a staff-level agreement with Pakistani authorities, subject to approval by the IMF's Executive Board.

Pakistan set to receive $700 million boost from IMF for economic revival

The International Monetary Fund (IMF) on Tuesday&nbsp;upgraded its growth forecasts for China, indicating that the country's economy is set to expand by 5.4 per cent this year, reflecting a robust Post-Covid recovery. &nbsp;

This upward revision comes after the IMF's previous forecast of 5 per cent growth, Reuters reported. &nbsp;

However, the IMF anticipates slower growth in 2024, with concerns centred around the lingering weakness in the property sector and subdued external demand, potentially limiting gross domestic product (GDP) growth to 4.6 per cent. Nonetheless, this revised projection remains more favourable than the 4.2 per cent forecast in the IMF's World Economic Outlook (WEO) published in October.&nbsp;

The IMF's decision to upgrade China's growth prospects for 2023 and 2024 is influenced by recent policy actions taken by China, including the approval of a 1 trillion-yuan ($137 billion) sovereign bond issue and the facilitation of local governments to frontload a portion of their 2024 bond quotas. &nbsp;

These measures are aimed at providing additional support to the Chinese economy in its path to recovery. &nbsp;

Reuters quoted Gita Gopinath, the IMF's First Deputy Managing Director, as saying, "We have revised up growth by 0.4 percentage points in both years relative to our October WEO projections, reflecting stronger than expected growth in the third quarter and the new policy support that was recently announced."&nbsp;

While recognising China's strong economic recovery, Gopinath also emphasised the need for additional measures in the property sector to secure a quicker and more sustainable recovery. Addressing the real estate sector, she highlighted the importance of accelerating the exit of non-viable property developers, removing obstacles to housing price adjustments, and increasing central government funding for housing completion as part of the policy package. &nbsp;

These measures are seen as essential for bringing the property sector to a more sustainable size and minimising economic costs. The property sector, combined with the local government debt crunch, poses challenges to China's long-term growth potential, according to economists.&nbsp;

Local government debt in China has surged to 92 trillion yuan ($12.6 trillion), equivalent to 76 per cent of China's economic output in 2022, a significant increase from 62.2 per cent in 2019. In response, the Politburo, a top decision-making body of the ruling Communist Party, pledged in late July to introduce measures to reduce local government debt risks. &nbsp;

Gopinath called for coordinated fiscal framework reforms and balance-sheet restructuring at the central government level to address local government debt strains, close fiscal gaps, and control the flow of debt.

Furthermore, she stressed the necessity of a comprehensive strategy to reduce the debt level of local government financing vehicles (LGFVs), which were originally established to fund infrastructure investments but now present a substantial risk to China's slowing economy, with their combined debt reaching approximately $9 trillion.&nbsp;

To mitigate financial stability risks, Gopinath underlined the importance of improving fiscal transparency and risk monitoring at the local government level. She warned that "financial stability risks are elevated and still rising," highlighting the significance of proactive measures to prevent the emergence of new vulnerabilities in the Chinese economy.&nbsp;

(Inputs from Reuters)&nbsp;

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The International Monetary Fund (IMF) on Tuesday upgraded its growth forecasts for China, indicating that the country's economy is set to expand by 5.4 per cent this year, reflecting a robust Post-Covid recovery.

The International Monetary Fund (IMF) on Tuesday upgraded its growth forecasts for China, indicating that the country's economy is set to expand by 5.4 per cent this year, reflecting a robust Post-Covid recovery. This upward revision comes after the IMF's previous forecast of 5 per cent growth, Reuters reported. However, the IMF anticipates slower growth in 2024, with concerns centred around the lingering weakness in the property sector and subdued external demand, potentially limiting gross domestic product (GDP) growth to 4.6 per cent. Nonetheless, this revised projection remains more favourable than the 4.2 per cent forecast in the IMF's World Economic Outlook (WEO) published in October. The IMF's decision to upgrade China's growth prospects for 2023 and 2024 is influenced by recent policy actions taken by China, including the approval of a 1 trillion-yuan ($137 billion) sovereign bond issue and the facilitation of local governments to frontload a portion of their 2024 bond quotas. These measures are aimed at providing additional support to the Chinese economy in its path to recovery. Reuters quoted Gita Gopinath, the IMF's First Deputy Managing Director, as saying, "We have revised up growth by 0.4 percentage points in both years relative to our October WEO projections, reflecting stronger than expected growth in the third quarter and the new policy support that was recently announced." While recognising China's strong economic recovery, Gopinath also emphasised the need for additional measures in the property sector to secure a quicker and more sustainable recovery. Addressing the real estate sector, she highlighted the importance of accelerating the exit of non-viable property developers, removing obstacles to housing price adjustments, and increasing central government funding for housing completion as part of the policy package. These measures are seen as essential for bringing the property sector to a more sustainable size and minimising economic costs. The property sector, combined with the local government debt crunch, poses challenges to China's long-term growth potential, according to economists. Local government debt in China has surged to 92 trillion yuan ($12.6 trillion), equivalent to 76 per cent of China's economic output in 2022, a significant increase from 62.2 per cent in 2019. In response, the Politburo, a top decision-making body of the ruling Communist Party, pledged in late July to introduce measures to reduce local government debt risks. Gopinath called for coordinated fiscal framework reforms and balance-sheet restructuring at the central government level to address local government debt strains, close fiscal gaps, and control the flow of debt. Furthermore, she stressed the necessity of a comprehensive strategy to reduce the debt level of local government financing vehicles (LGFVs), which were originally established to fund infrastructure investments but now present a substantial risk to China's slowing economy, with their combined debt reaching approximately $9 trillion. To mitigate financial stability risks, Gopinath underlined the importance of improving fiscal transparency and risk monitoring at the local government level. She warned that "financial stability risks are elevated and still rising," highlighting the significance of proactive measures to prevent the emergence of new vulnerabilities in the Chinese economy. (Inputs from Reuters) WATCH WION LIVE HERE

IMF raises China's 2023 and 2024 growth forecasts amid post-Covid recovery 

The International Monetary Fund (IMF) is betting on a strong comeback for China, as it upgrades its growth forecast in 2023 to an impressive 5.4%.

IMF praises China's post-Covid rebound, applauds its economic resurgence | World DNA | WION

A recent article by two economists in the Monetary Authority of Singapore's biannual report have highlighted the growing preference for remote work among Singapore's workforce.

Analysis by International Monetary Fund (IMF) economists Shujaat Khan and Margaux MacDonald showed that over 70 per cent of Singaporean workers prefer remote work. The economists, citing a 2022 report by PwC, revealed that 73 per cent of Singaporean workers favoured a hybrid work model between June 2022 and May 2023. This percentage is significantly higher than the global average of 63 per cent.

The appeal for remote work has remained stable at around 20 per cent of the workforce, which is slightly higher than pre-COVID-19 levels. However, this trend in Singapore is different from the global pattern, where education and gender play a major role. In Singapore, factors like age, perceived productivity, and the sectors in which individuals are employed primarily shape the inclination towards remote work.

Khan and MacDonald noted that in Singapore, younger individuals have a greater desire for remote work. Additionally, those who perceive themselves as being more productive are more inclined towards working from home. It is important to note that remote work prevalence varies across different sectors.

During the pandemic in 2020, around 77 per cent of employed residents in digital sectors such as information and communications as well as financial services worked remotely. This is a stark contrast to only 11 per cent of the food and beverage services sector and 28 per cent in health and social services

The economists highlighted insights provided by the Ministry of Manpower (MOM) about the changing nature of work arrangements in Singapore. The MOM's data revealed that in 2021, over 90 per cent of establishments in Singapore offered at least one flexible work arrangement, significantly higher than the 50 per cent average in the six years before the pandemic. Even though the figure dropped to 71 per cent in 2022, it remained higher than pre-pandemic levels. Furthermore, the MOM's survey in 2022 showed that 34 per cent of employed residents worked from home at least once a month.

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A recent article by two economists in the Monetary Authority of Singapore's biannual report have highlighted the growing preference for remote work among Singapore's workforce.

A recent article by two economists in the Monetary Authority of Singapore's biannual report have highlighted the growing preference for remote work among Singapore's workforce. Analysis by International Monetary Fund (IMF) economists Shujaat Khan and Margaux MacDonald showed that over 70 per cent of Singaporean workers prefer remote work. The economists, citing a 2022 report by PwC, revealed that 73 per cent of Singaporean workers favoured a hybrid work model between June 2022 and May 2023. This percentage is significantly higher than the global average of 63 per cent. The appeal for remote work has remained stable at around 20 per cent of the workforce, which is slightly higher than pre-COVID-19 levels. However, this trend in Singapore is different from the global pattern, where education and gender play a major role. In Singapore, factors like age, perceived productivity, and the sectors in which individuals are employed primarily shape the inclination towards remote work. Khan and MacDonald noted that in Singapore, younger individuals have a greater desire for remote work. Additionally, those who perceive themselves as being more productive are more inclined towards working from home. It is important to note that remote work prevalence varies across different sectors. During the pandemic in 2020, around 77 per cent of employed residents in digital sectors such as information and communications as well as financial services worked remotely. This is a stark contrast to only 11 per cent of the food and beverage services sector and 28 per cent in health and social services The economists highlighted insights provided by the Ministry of Manpower (MOM) about the changing nature of work arrangements in Singapore. The MOM's data revealed that in 2021, over 90 per cent of establishments in Singapore offered at least one flexible work arrangement, significantly higher than the 50 per cent average in the six years before the pandemic. Even though the figure dropped to 71 per cent in 2022, it remained higher than pre-pandemic levels. Furthermore, the MOM's survey in 2022 showed that 34 per cent of employed residents worked from home at least once a month. WATCH WION LIVE HERE

IMF economists highlight Singapore's strong preference for remote work

India's economic prowess is on the rise, with the international monetary fund projecting a significant increase in its contribution to global economic growth. Imf predicts a notable increase of 200 basis points, bringing India's contribution to global economic growth to 18% over the next five years.

IMF predicts India's growing role in the global economy

The International Monetary Fund (IMF) has revised its growth forecasts for China, indicating that the country's recovery is slowing down and attributing it to the weakness in its property sector. In its regional economic outlook report released on Wednesday, the IMF downgraded China's growth projection for 2023 and 2024. The world's second-largest economy is expected to expand by 5 per cent this year and 4.2 per cent next year, a decline from the IMF's April forecast of 5.2 per cent and 4.5 per cent, respectively.&nbsp;

The IMF's report highlights that China's recovery has been "losing steam," with the manufacturing purchasing managers' indexes entering a contraction phase between April and August. Simultaneously, conditions in the real estate sector continue to deteriorate, contributing to the downward revision in growth forecasts.&nbsp;

The report also raises concerns about the property market in China, stating that a prolonged housing market correction could lead to "greater financial stress among property developers and larger asset quality deterioration" in the near-term. This, in turn, could result in a potential decline of China's gross domestic product (GDP) by up to 1.6 per cent relative to the baseline by 2025. The global GDP would also be affected, with a decline of 0.6 per cent relative to the baseline.&nbsp;

Despite the challenges in China, the IMF's outlook for Asia and the Pacific in 2023 remains relatively positive. The report describes this region as "the most dynamic" for the year. The agency maintains its earlier growth projection for the region, forecasting a growth rate of 4.6 per cent in 2023. It anticipates that economic activity in the region will contribute to approximately two-thirds of global growth this year.&nbsp;

However, the IMF expects growth in Asia and the Pacific to decelerate to 4.2 per cent in the following year, and further slow to 3.9 per cent in the medium-term. This would represent the lowest growth rate in the past two decades, except for 2020. The structural slowdown in China and weaker productivity growth in many other economies are expected to exert downward pressure on the region.&nbsp;

One positive aspect noted in the report is disinflation. The IMF predicts that the region, excluding Japan, is expected to return to central bank inflation targets by the end of next year. This places Asia ahead of the rest of the world, where inflation is not anticipated to return to target levels until at least 2025.&nbsp;

However, the IMF cautions central banks in the region against prematurely easing monetary policy. It emphasises the need for these banks to ensure that inflation remains durably at appropriate targets, and suggests that strengthening financial supervision, vigilant monitoring of systemic risks, and modernising resolution frameworks are critical to maintaining financial stability.&nbsp;

(With inputs from Reuters)&nbsp;

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The International Monetary Fund (IMF) has revised its growth forecasts for China, indicating that the country's recovery is slowing down and attributing it to the weakness in its property sector.

The International Monetary Fund (IMF) has revised its growth forecasts for China, indicating that the country's recovery is slowing down and attributing it to the weakness in its property sector. In its regional economic outlook report released on Wednesday, the IMF downgraded China's growth projection for 2023 and 2024. The world's second-largest economy is expected to expand by 5 per cent this year and 4.2 per cent next year, a decline from the IMF's April forecast of 5.2 per cent and 4.5 per cent, respectively. The IMF's report highlights that China's recovery has been "losing steam," with the manufacturing purchasing managers' indexes entering a contraction phase between April and August. Simultaneously, conditions in the real estate sector continue to deteriorate, contributing to the downward revision in growth forecasts. The report also raises concerns about the property market in China, stating that a prolonged housing market correction could lead to "greater financial stress among property developers and larger asset quality deterioration" in the near-term. This, in turn, could result in a potential decline of China's gross domestic product (GDP) by up to 1.6 per cent relative to the baseline by 2025. The global GDP would also be affected, with a decline of 0.6 per cent relative to the baseline. Despite the challenges in China, the IMF's outlook for Asia and the Pacific in 2023 remains relatively positive. The report describes this region as "the most dynamic" for the year. The agency maintains its earlier growth projection for the region, forecasting a growth rate of 4.6 per cent in 2023. It anticipates that economic activity in the region will contribute to approximately two-thirds of global growth this year. However, the IMF expects growth in Asia and the Pacific to decelerate to 4.2 per cent in the following year, and further slow to 3.9 per cent in the medium-term. This would represent the lowest growth rate in the past two decades, except for 2020. The structural slowdown in China and weaker productivity growth in many other economies are expected to exert downward pressure on the region. One positive aspect noted in the report is disinflation. The IMF predicts that the region, excluding Japan, is expected to return to central bank inflation targets by the end of next year. This places Asia ahead of the rest of the world, where inflation is not anticipated to return to target levels until at least 2025. However, the IMF cautions central banks in the region against prematurely easing monetary policy. It emphasises the need for these banks to ensure that inflation remains durably at appropriate targets, and suggests that strengthening financial supervision, vigilant monitoring of systemic risks, and modernising resolution frameworks are critical to maintaining financial stability. (With inputs from Reuters) WATCH WION LIVE HERE

China’s property market could slow down Asia's economy: IMF

In a week overshadowed by fresh violence in West Asia and hosted by a country still recovering from an earthquake, the annual meetings of the International Monetary Fund and World Bank concluded in Marrakech.

IMF-World Bank meet: Key takeaways

A top international monetary fund official has given a thumbs up to India's economic growth story. Krishna Srinivasan, director of the Asia and Pacific department at the IMF, said India's macroeconomic environment is pretty sound. But he also added that India needs to do further structural reforms to exploit its ‘significant’ potential for higher growth.

IMF urges more reforms in India

The International Monetary Fund (IMF) has revised its growth projections downward for both China and the euro area while emphasising the uneven and sluggish nature of the global economic recovery. Despite acknowledging the "remarkable strength" of the U.S. economy, the IMF has trimmed its global real GDP growth forecast for 2024 by 0.1 percentage points to 2.9 per cent, from its July projection, while maintaining the 2023 growth forecast at 3.0 per cent. In comparison, world output expanded by 3.5 per cent in 2022.

Reuters cited Pierre-Olivier Gourinchas, Chief Economist at the IMF, who noted that while the global economy is recovering from the COVID-19 pandemic, Russia's invasion of Ukraine, and last year's energy crisis, growth trends vary widely across different regions. He expressed concerns about medium-term growth prospects, describing them as "mediocre." Gourinchas also highlighted several risks, including the real estate crisis in China, volatile commodity prices, geopolitical fragmentation, and resurgence in inflation.

Regarding the recent Israel-Palestinian conflict, Gourinchas stated that it was too early to assess its potential impact on the global economy, emphasising the need to consider various scenarios that have yet to be explored.

The IMF's outlook underscores the challenges facing the global economy, characterised by the persistent effects of the pandemic, Russia's conflict in Ukraine, rising interest rates, extreme weather events, and reduced fiscal support. The total global output in 2023 is expected to be 3.4 per cent lower than pre-pandemic projections, equating to approximately $3.6 trillion.

Gourinchas described the current state of the global economy as "limping along" and falling short of a full recovery. The IMF's medium-term outlook predicts growth of 3.1 per cent in 2028, a significant drop from the 4.9 per cent forecast made just before the global financial crisis of 2008-2009.

Regarding inflation, the IMF expects a decline due to lower energy and food prices. It anticipates a drop in annual average inflation to 6.9 per cent in 2023, down from 8.7 per cent in 2022, and further to 5.8 per cent in 2024. Core inflation, which excludes food and energy prices, is expected to decrease gradually, reaching 6.3 per cent in 2023 and 5.3 per cent in 2024.

Gourinchas cautioned against premature interest rate cuts, citing strong labour markets and the absence of a wage-price spiral despite robust employment and low unemployment rates in most advanced economies.

The IMF recommended that countries remain vigilant with their monetary policies until inflation shows sustained decline and urged them to rebuild fiscal buffers to address future challenges or shocks.

In terms of growth, the IMF raised its growth forecast for the United States, citing strong business investment and consumption, making it the only major economy surpassing pre-pandemic projections. In contrast, China's GDP growth is expected to slow to 5.0 per cent in 2023 and 4.2 per cent in 2024, primarily due to a real estate crisis and weak external demand.

The IMF also downgraded its growth estimates for the euro area to 0.7 per cent in 2023 and 1.2 per cent in 2024, while the UK saw its growth forecast revised upward for 2023 but lowered for 2024. Japan is expected to experience growth of 2.0 per cent in 2023, mainly driven by pent-up demand, tourism, monetary policy, and auto exports, with a stable outlook for 2024.

(Inputs from Reuters)

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The International Monetary Fund (IMF) has revised its growth projections downward for both China and the euro area while emphasising the uneven and sluggish nature of the global economic recovery.

The International Monetary Fund (IMF) has revised its growth projections downward for both China and the euro area while emphasising the uneven and sluggish nature of the global economic recovery. Despite acknowledging the "remarkable strength" of the U.S. economy, the IMF has trimmed its global real GDP growth forecast for 2024 by 0.1 percentage points to 2.9 per cent, from its July projection, while maintaining the 2023 growth forecast at 3.0 per cent. In comparison, world output expanded by 3.5 per cent in 2022. Reuters cited Pierre-Olivier Gourinchas, Chief Economist at the IMF, who noted that while the global economy is recovering from the COVID-19 pandemic, Russia's invasion of Ukraine, and last year's energy crisis, growth trends vary widely across different regions. He expressed concerns about medium-term growth prospects, describing them as "mediocre." Gourinchas also highlighted several risks, including the real estate crisis in China, volatile commodity prices, geopolitical fragmentation, and resurgence in inflation. Regarding the recent Israel-Palestinian conflict, Gourinchas stated that it was too early to assess its potential impact on the global economy, emphasising the need to consider various scenarios that have yet to be explored. The IMF's outlook underscores the challenges facing the global economy, characterised by the persistent effects of the pandemic, Russia's conflict in Ukraine, rising interest rates, extreme weather events, and reduced fiscal support. The total global output in 2023 is expected to be 3.4 per cent lower than pre-pandemic projections, equating to approximately $3.6 trillion. Gourinchas described the current state of the global economy as "limping along" and falling short of a full recovery. The IMF's medium-term outlook predicts growth of 3.1 per cent in 2028, a significant drop from the 4.9 per cent forecast made just before the global financial crisis of 2008-2009. Regarding inflation, the IMF expects a decline due to lower energy and food prices. It anticipates a drop in annual average inflation to 6.9 per cent in 2023, down from 8.7 per cent in 2022, and further to 5.8 per cent in 2024. Core inflation, which excludes food and energy prices, is expected to decrease gradually, reaching 6.3 per cent in 2023 and 5.3 per cent in 2024. Gourinchas cautioned against premature interest rate cuts, citing strong labour markets and the absence of a wage-price spiral despite robust employment and low unemployment rates in most advanced economies. The IMF recommended that countries remain vigilant with their monetary policies until inflation shows sustained decline and urged them to rebuild fiscal buffers to address future challenges or shocks. In terms of growth, the IMF raised its growth forecast for the United States, citing strong business investment and consumption, making it the only major economy surpassing pre-pandemic projections. In contrast, China's GDP growth is expected to slow to 5.0 per cent in 2023 and 4.2 per cent in 2024, primarily due to a real estate crisis and weak external demand. The IMF also downgraded its growth estimates for the euro area to 0.7 per cent in 2023 and 1.2 per cent in 2024, while the UK saw its growth forecast revised upward for 2023 but lowered for 2024. Japan is expected to experience growth of 2.0 per cent in 2023, mainly driven by pent-up demand, tourism, monetary policy, and auto exports, with a stable outlook for 2024. (Inputs from Reuters) WATCH WION LIVE HERE

IMF downgrades growth forecasts for China and Euro area, cites uneven global recovery

Vahram Stepanyan, the Fund's country representative in Ukraine, announced on Sunday that the organization will start meeting with government representatives and other stakeholders there on Sunday to talk about policy objectives and difficulties.

IMF holds meetings in Ukraine to discuss economic challenges

The IMF claims that Guyana's GDP grew by 62.3% in 2022, the fastest in the world. In addition to the fact that a third oil field has begun to produce oil, investments in housing, transportation, and human capital development have all contributed to the growth of Guyana's nonoil industry.

Guyana's Oil Odyssey: From discovery to global prominence

Sri Lanka's bid for financial stability faces a significant setback. The international monetary fund, in its first review under a 2.9 billion dollar bailout package has frozen a crucial 330 million dollar tranche. The reason behind this decision is a growing concern over a potential shortfall in the Sri Lankan government's revenue generation.

IMF stalls $330 mn tranche for Sri Lanka due to revenue shortfall

The International Monetary Fund (IMF) on Thursday (September 21) approved a $300 million loan agreement for Burkina Faso to combat poverty and bolster the economy.&nbsp;

The IMF executive board has granted a&nbsp;four-year loan agreement worth around $302 million under its&nbsp;Extended Credit Facility (ECF) to the West African nation. The first tranche of $31.8 million in aid will be disbursed immediately, the global monetary body said.&nbsp;

IMF said the credit line will help "create fiscal space for priority spending, strengthen resilience to shocks while reducing poverty, and bolster fiscal discipline, transparency and governance".&nbsp;

"It will also help close financing gaps reflecting tight financial conditions, large fiscal deficits, debt vulnerabilities, food insecurity, and fragile security conditions," said the IMF.&nbsp;

IMF Deputy Managing Director Kenji Okamura, commenting on the 48-month-long loan&nbsp;agreement, said the priority lay in changing the challenging&nbsp;macroeconomic outlook of the country.&nbsp;

“For the country’s long-term development process, it remains essential to sustain structural reforms to foster economic growth and diversification as well as to reduce poverty. In this context, further efforts to improve the business environment, reinforce governance and anti-corruption efforts, and address the security crisis are critical," said&nbsp;Okamura.&nbsp;

<a href="https://www.wionews.com/world/burkina-faso-at-least-51killed-in-attacks-by-jihadist-groups-564113" target="_blank">Also read | Burkina Faso: At least 51 killed in attacks by jihadist groups</a>

<h2>Jihadist war-torn country of Burkina Faso</h2>

Being one of the poorest countries, Burkina Faso is undergoing a violent cycle after witnessing two coups last year. It is battling jihadist insurgency which spilt over eight years ago in 2015 from the neighbouring country of Mali, which is also incidentally run by the military.&nbsp;

The region is bustling with Islamist groups linked to deadly terror outfits al Qaeda and Islamic State.&nbsp;

<a href="https://www.wionews.com/videos/troops-film-boys-killings-in-burkina-faso-579159">WATCH |&nbsp;Troops film boys' killings in Burkina Faso</a>

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According to&nbsp;the IMF, over 40 per cent of Burkina Faso's population currently lives in poverty while the UN refugee agency states that&nbsp;two million people have been displaced, with no end to the jihadist violence in sight. Additionally, the violence has led to the death of over 16,000 people.&nbsp;

"Growing insecurity and conflict means vulnerability is increasing in the region, and it is getting harder to help communities in isolated areas," said UNICEF Regional Director for West and Central Africa, Marie-Pierre Poirier.

(With inputs from agencies)

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The International Monetary Fund (IMF) on Thursday (September 21) approved a $300 million loan agreement for Burkina Faso to combat poverty and bolster the economy.

The International Monetary Fund (IMF) on Thursday (September 21) approved a $300 million loan agreement for Burkina Faso to combat poverty and bolster the economy. The IMF executive board has granted a four-year loan agreement worth around $302 million under its Extended Credit Facility (ECF) to the West African nation. The first tranche of $31.8 million in aid will be disbursed immediately, the global monetary body said. IMF said the credit line will help "create fiscal space for priority spending, strengthen resilience to shocks while reducing poverty, and bolster fiscal discipline, transparency and governance". "It will also help close financing gaps reflecting tight financial conditions, large fiscal deficits, debt vulnerabilities, food insecurity, and fragile security conditions," said the IMF. IMF Deputy Managing Director Kenji Okamura, commenting on the 48-month-long loan agreement, said the priority lay in changing the challenging macroeconomic outlook of the country. “For the country’s long-term development process, it remains essential to sustain structural reforms to foster economic growth and diversification as well as to reduce poverty. In this context, further efforts to improve the business environment, reinforce governance and anti-corruption efforts, and address the security crisis are critical," said Okamura. Also read | Burkina Faso: At least 51 killed in attacks by jihadist groups Jihadist war-torn country of Burkina Faso Being one of the poorest countries, Burkina Faso is undergoing a violent cycle after witnessing two coups last year. It is battling jihadist insurgency which spilt over eight years ago in 2015 from the neighbouring country of Mali, which is also incidentally run by the military. The region is bustling with Islamist groups linked to deadly terror outfits al Qaeda and Islamic State. WATCH | Troops film boys' killings in Burkina Faso × According to the IMF, over 40 per cent of Burkina Faso's population currently lives in poverty while the UN refugee agency states that two million people have been displaced, with no end to the jihadist violence in sight. Additionally, the violence has led to the death of over 16,000 people. "Growing insecurity and conflict means vulnerability is increasing in the region, and it is getting harder to help communities in isolated areas," said UNICEF Regional Director for West and Central Africa, Marie-Pierre Poirier. (With inputs from agencies) WATCH WION LIVE HERE:

IMF approves $300 million loan for war-torn Burkina Faso

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