The coronavirus pandemic has driven the global economy into a downturn that will require massive funding to help developing nations, IMF chief Kristalina Georgieva said Friday.

"It is clear that we have entered a recession" that will be worse than in 2009 following the global financial crisis, she said in an online press briefing.

Also read | <a href="https://www.wionews.com/world/coronavirus-pandemic-sets-the-stage-for-unprecedented-global-economic-losses-288927">Coronavirus pandemic sets the stage for unprecedented global economic losses</a>

With the worldwide economic "sudden stop," Georgieva said the fund's estimate "for the overall financial needs of emerging markets is $2.5 trillion."&nbsp;

But she warned that estimate "is on the lower end."

Governments in emerging markets, which have suffered an exodus of capital of more than $83 billion in recent weeks, can cover much of that, but "clearly the domestic resources are insufficient" and many already have high debt loads.

Over 80 countries, mostly of low incomes, have already have requested emergency aid from the International Monetary Fund, she said.

"We do know that their own reserves and domestic resources will not be sufficient," Georgieva said, adding that the fund is aiming to beef up its response "to do more, do it better, do it faster than ever before."

The IMF chief spoke to reporters following a virtual meeting with the Washington-based lender's steering committee, when she officially requested an increase in the fund's fast-deploying emergency facilities from their current level of around $50 billion.

She also welcomed the $2.2 trillion economic package approved by the US Senate, saying "it is absolutely necessary to cushion the world's largest economy against an abrupt drop the economic activities." 
&nbsp;

The coronavirus pandemic has driven the global economy into a downturn that will require massive funding to help developing nations, IMF chief Kristalina Georgieva said Friday.

The coronavirus pandemic has driven the global economy into a downturn that will require massive funding to help developing nations, IMF chief Kristalina Georgieva said Friday. "It is clear that we have entered a recession" that will be worse than in 2009 following the global financial crisis, she said in an online press briefing. Also read | Coronavirus pandemic sets the stage for unprecedented global economic losses With the worldwide economic "sudden stop," Georgieva said the fund's estimate "for the overall financial needs of emerging markets is $2.5 trillion." But she warned that estimate "is on the lower end." Governments in emerging markets, which have suffered an exodus of capital of more than $83 billion in recent weeks, can cover much of that, but "clearly the domestic resources are insufficient" and many already have high debt loads. Over 80 countries, mostly of low incomes, have already have requested emergency aid from the International Monetary Fund, she said. "We do know that their own reserves and domestic resources will not be sufficient," Georgieva said, adding that the fund is aiming to beef up its response "to do more, do it better, do it faster than ever before." The IMF chief spoke to reporters following a virtual meeting with the Washington-based lender's steering committee, when she officially requested an increase in the fund's fast-deploying emergency facilities from their current level of around $50 billion. She also welcomed the $2.2 trillion economic package approved by the US Senate, saying "it is absolutely necessary to cushion the world's largest economy against an abrupt drop the economic activities."

Clear we have entered recession, would be worse than 2009: IMF

The chief economist of the International Monetary Fund Gita Gopinath stated over COVID-19 that this temporary crisis must be stopped from causing the permanent harm to the world.

IMF's chief economist over COVID-19: Temporary crisis must be stopped from causing permanent harm

Growing concerns inside the <a href="https://www.wionews.com/business-economy/coronavirus-poses-risks-to-fragile-recovery-in-global-economy-imf-281671">International Monetary Fund</a> and the <a href="https://www.wionews.com/india-news/world-bank-pegs-indias-growth-at-5-in-financial-year-2020-projects-recovery-next-year-273104">World Bank</a> about the spread of the new <a href="https://www.wionews.com/world/coronavirus-severity-shrinks-in-china-as-global-tally-continues-to-rise-282983">coronavirus</a> have prompted the institutions to consider scaling back their Spring Meetings in April or hold them by teleconference, people familiar with the discussions said on Wednesday.

The institutions' April 17-19 Spring Meetings are scheduled to bring some 10,000 government officials, journalists,&nbsp;business&nbsp;people and civil society representatives from across the globe to a tightly packed, two-block area of downtown Washington, DC, that houses their headquarters.

Also read: <a href="https://www.wionews.com/world/coronavirus-severity-shrinks-in-china-as-global-tally-continues-to-rise-282983">Coronavirus: Severity shrinks in China as global tally continues to rise</a>

Financial markets have fallen sharply in recent days on news that the virus is spreading rapidly in Europe. Italy has reported more than 400 cases and people who have visited Italy have tested positive in Brazil, Algeria, Austria, Croatia, Greece and other countries.

Like other coronaviruses, the new virus which causes a disease now called <a href="https://www.wionews.com/world/coronavirus-severity-shrinks-in-china-as-global-tally-continues-to-rise-282983">COVID-19</a>&nbsp;is transmitted from person to person via droplets when an infected person breathes out, coughs or sneezes. It can also spread via contaminated surfaces such as door handles or railings.

The IMF has warned in recent days of a potentially deeper economic fallout as the <a href="https://www.wionews.com/world/coronavirus-severity-shrinks-in-china-as-global-tally-continues-to-rise-282983">coronavirus</a> spreads beyond <a href="https://www.wionews.com/world/coronavirus-severity-shrinks-in-china-as-global-tally-continues-to-rise-282983">China</a>, cutting its forecast for 2020 global growth by 0.1 per cent.

Also read: <a href="https://www.wionews.com/business-economy/coronavirus-poses-risks-to-fragile-recovery-in-global-economy-imf-281671">Coronavirus poses risks to fragile recovery in global economy: IMF</a>

The virus' spread has raised concerns inside the Fund and the World Bank that the close interactions among people from their 189 member countries at the Spring Meetings could inadvertently contribute to the problem.

Officials from both institutions and member governments said that talk of cancelling the meetings outright is premature, but they are considering several options to modify them. No decisions have been made, they said, adding that much depends on efforts to contain the virus in the coming days and weeks.

Options include scaling back the number of meetings, cancelling external events and limiting the size of the country delegations that would travel to Washington. Another alternative is to hold "virtual" meetings by teleconference, and the institutions could still proceed with full-fledged meetings.

One person familiar with the IMF's planning discussions said: "Plenty of people here see wider merit in testing whether holding key meetings virtually could be made to work."

Other sources said IMF and World Bank managers were considering various options, and the scale and scope of the meeting would reflect the degree of concern.

"Of course we are thinking about all eventualities," one of the sources familiar with the planning efforts said.

In a joint statement,&nbsp;the IMF and the World Bank said that their senior leadership teams were closely monitoring the spread of the coronavirus.

Growing concerns inside the International Monetary Fund and the World Bank about the spread of the new coronavirus have prompted the institutions to consider scaling back their Spring Meetings in April or hold them by teleconference, people familiar with the discussions said on Wednesday.

Growing concerns inside the International Monetary Fund and the World Bank about the spread of the new coronavirus have prompted the institutions to consider scaling back their Spring Meetings in April or hold them by teleconference, people familiar with the discussions said on Wednesday. The institutions' April 17-19 Spring Meetings are scheduled to bring some 10,000 government officials, journalists, business people and civil society representatives from across the globe to a tightly packed, two-block area of downtown Washington, DC, that houses their headquarters. Also read: Coronavirus: Severity shrinks in China as global tally continues to rise Financial markets have fallen sharply in recent days on news that the virus is spreading rapidly in Europe. Italy has reported more than 400 cases and people who have visited Italy have tested positive in Brazil, Algeria, Austria, Croatia, Greece and other countries. Like other coronaviruses, the new virus which causes a disease now called COVID-19 is transmitted from person to person via droplets when an infected person breathes out, coughs or sneezes. It can also spread via contaminated surfaces such as door handles or railings. The IMF has warned in recent days of a potentially deeper economic fallout as the coronavirus spreads beyond China, cutting its forecast for 2020 global growth by 0.1 per cent. Also read: Coronavirus poses risks to fragile recovery in global economy: IMF The virus' spread has raised concerns inside the Fund and the World Bank that the close interactions among people from their 189 member countries at the Spring Meetings could inadvertently contribute to the problem. Officials from both institutions and member governments said that talk of cancelling the meetings outright is premature, but they are considering several options to modify them. No decisions have been made, they said, adding that much depends on efforts to contain the virus in the coming days and weeks. Options include scaling back the number of meetings, cancelling external events and limiting the size of the country delegations that would travel to Washington. Another alternative is to hold "virtual" meetings by teleconference, and the institutions could still proceed with full-fledged meetings. One person familiar with the IMF's planning discussions said: "Plenty of people here see wider merit in testing whether holding key meetings virtually could be made to work." Other sources said IMF and World Bank managers were considering various options, and the scale and scope of the meeting would reflect the degree of concern. "Of course we are thinking about all eventualities," one of the sources familiar with the planning efforts said. In a joint statement, the IMF and the World Bank said that their senior leadership teams were closely monitoring the spread of the coronavirus.

International Monetary Fund, World Bank consider 'virtual' Spring Meetings as coronavirus spreads

The coronavirus epidemic has already disrupted<a href="https://www.wionews.com/business-economy/oil-up-on-slowing-pace-of-coronavirus-venezuela-sanctions-281596"> economic growth in China </a>and a further spread to other countries could derail a "highly fragile" projected recovery in the global economy in 2020, the International Monetary Fund warned on Wednesday.

In a note for G20 finance ministers and central bankers, the global lender mapped out many risks facing the global economy, including the disease and a renewed spike in US-China trade tensions, as well as climate-related disasters.

Watch:&nbsp;Coronavirus - Tourists Disappear from Chinatown, business down

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IMF Managing Director Kristalina Georgieva said the outbreak was a stark reminder of how unforeseen events could threaten a fragile recovery, and urged G20 policymakers to work to reduce other uncertainties linked to trade, climate change and inequality.

"Uncertainty is becoming the new normal," Georgieva wrote in a blog posted on the IMF website. "While some uncertainties — like disease — are out of our control, we should not create new uncertainties where we can avoid it."

<a href="https://www.wionews.com/business-economy/puma-adidas-fear-impacts-of-covid-19-on-china-business-281590">Also read: Puma, Adidas fear impacts of COVID-19 on China business</a>

Finance ministers and central bankers from the top 20 advanced industrialized economies will gather in Riyadh, Saudi Arabia, this week, still uncertain about the impact of the coronavirus, known as COVID-19.

Despite the outbreak, the IMF said it was sticking to its January forecast for 3.3% growth in the global economy this year, up from 2.9% in 2019. It represents a downward revision of 0.1 percentage points from its forecast in October.

It said the recovery would be shallow and could be derailed by re-escalation of trade tensions or a further spread of the disease, which had already disrupted production in China and could affect other countries through tourism, supply chain linkages and commodity prices.

China has said it could still meet its economic growth target for 2020 despite the epidemic. Georgieva said the IMF expected only a small reduction in China's gross domestic product growth unless a protracted outbreak worsens the slowdown.

Even in the best-case scenarios, the projected rate of global growth was modest, she said, urging G20 policymakers to act to reduce trade tensions, mitigate climate change and tackle persistent inequality.

Cyber attacks, an escalation of geopolitical tensions in the Middle East or a breakdown in trade talks between China and the United States could impede the short-term global recovery, the IMF said. Climate-related disasters, protectionism and social and political unrest triggered by persistent inequality posed further economic risks.

In her blog, Georgieva said a Phase 1 trade deal between the United States and China eliminated some negative consequences of trade tensions, reducing the drag on global GDP by 0.2% in 2020, or about one quarter of the total impact.

But it left many tariffs in place and contained managed trade arrangements that could distort trade and investment while costing the global economy many billions of dollars, she said.

She also cited new IMF estimates that a typical climate-related natural disaster reduced growth by an average of 0.4 percentage points in the affected country the year it ocurred.

To respond, policymakers should focus on diversifying energy sources and investing in resilient infrastructure.

Georgieva said it was also critical to address persistently high income and wealth inequalities that she said could foment distrust in government contribute to social unrest.

Ministers could act this week by focusing on raising living standards and creating better-paying jobs through investments in high-quality education, research and digitalization, she said.

The coronavirus epidemic has already disrupted economic growth in China and a further spread to other countries could derail a "highly fragile" projected recovery in the global economy in 2020, the International Monetary Fund warned on Wednesday.

The coronavirus epidemic has already disrupted economic growth in China and a further spread to other countries could derail a "highly fragile" projected recovery in the global economy in 2020, the International Monetary Fund warned on Wednesday. In a note for G20 finance ministers and central bankers, the global lender mapped out many risks facing the global economy, including the disease and a renewed spike in US-China trade tensions, as well as climate-related disasters. Watch: Coronavirus - Tourists Disappear from Chinatown, business down × IMF Managing Director Kristalina Georgieva said the outbreak was a stark reminder of how unforeseen events could threaten a fragile recovery, and urged G20 policymakers to work to reduce other uncertainties linked to trade, climate change and inequality. "Uncertainty is becoming the new normal," Georgieva wrote in a blog posted on the IMF website. "While some uncertainties — like disease — are out of our control, we should not create new uncertainties where we can avoid it." Also read: Puma, Adidas fear impacts of COVID-19 on China business Finance ministers and central bankers from the top 20 advanced industrialized economies will gather in Riyadh, Saudi Arabia, this week, still uncertain about the impact of the coronavirus, known as COVID-19. Despite the outbreak, the IMF said it was sticking to its January forecast for 3.3% growth in the global economy this year, up from 2.9% in 2019. It represents a downward revision of 0.1 percentage points from its forecast in October. It said the recovery would be shallow and could be derailed by re-escalation of trade tensions or a further spread of the disease, which had already disrupted production in China and could affect other countries through tourism, supply chain linkages and commodity prices. China has said it could still meet its economic growth target for 2020 despite the epidemic. Georgieva said the IMF expected only a small reduction in China's gross domestic product growth unless a protracted outbreak worsens the slowdown. Even in the best-case scenarios, the projected rate of global growth was modest, she said, urging G20 policymakers to act to reduce trade tensions, mitigate climate change and tackle persistent inequality. Cyber attacks, an escalation of geopolitical tensions in the Middle East or a breakdown in trade talks between China and the United States could impede the short-term global recovery, the IMF said. Climate-related disasters, protectionism and social and political unrest triggered by persistent inequality posed further economic risks. In her blog, Georgieva said a Phase 1 trade deal between the United States and China eliminated some negative consequences of trade tensions, reducing the drag on global GDP by 0.2% in 2020, or about one quarter of the total impact. But it left many tariffs in place and contained managed trade arrangements that could distort trade and investment while costing the global economy many billions of dollars, she said. She also cited new IMF estimates that a typical climate-related natural disaster reduced growth by an average of 0.4 percentage points in the affected country the year it ocurred. To respond, policymakers should focus on diversifying energy sources and investing in resilient infrastructure. Georgieva said it was also critical to address persistently high income and wealth inequalities that she said could foment distrust in government contribute to social unrest. Ministers could act this week by focusing on raising living standards and creating better-paying jobs through investments in high-quality education, research and digitalization, she said.

Coronavirus poses risks to fragile recovery in global economy: IMF

The <a href="https://www.wionews.com/world/coronavirus-outbreak-china-reports-drop-in-cases-for-third-consecutive-day-as-toll-passes-1600-280937">coronavirus epidemic </a>could damage global economic growth this year, the IMF head said Sunday, but a sharp and rapid economic rebound could follow.

"There may be a cut that we are still hoping would be in the 0.1-0.2 percentage space," the managing director of the International Monetary Fund, Kristalina Georgieva, told the Global Women's Forum in Dubai.

She said the full impact of the spreading disease that has already killed more than 1,600 people would depend on how quickly it was contained.

"I advise everybody not to jump to premature conclusions. There is still a great deal of uncertainty. We operate with scenarios, not yet with projections, ask me in 10 days," Georgieva said.

<a href="https://www.wionews.com/world/united-qantas-virgin-atlantic-among-many-who-banned-flights-to-china-among-coronavirus-outbreak-280547">Also Read:&nbsp;United, Qantas, Virgin Atlantic extend flight ban to China</a>

In its January update to the World Economic Outlook, the IMF lowered global economic growth forecast in 2020 by a 0.1 percentage point to 3.3 per cent, following a 2.9 per cent growth the previous year, the lowest in a decade.

Georgieva said it was "too early" to assess the full impact of the epidemic but acknowledged that it had already affected sectors such as tourism and transportation.

"It is too early to say because we don't yet quite know what is the nature of this virus. We don't know how quickly China will be able to contain it. We don't know whether it will spread to the rest of the world," she said.

If the disease is "contained rapidly, there can be a sharp drop and a very rapid rebound", in what is known as the V-shaped impact, she said.

Compared to the impact of the Severe Acute Respiratory Syndrome (SARS) in 2002, she said China's economy then made up just 8.0 per cent of the global economy. Now, that figure is 19 per cent.

She said the trade agreement between the United States and China, the world's first and second economies, had reduced the disease's impact on the global economy.

But the world should be concerned "about sluggish growth" impacted by uncertainty, said the IMF chief.

"We are now stuck with low productivity growth, low economic growth, low interest rates and low inflation," she told the Dubai forum, also attended by US President Donald Trump's daughter Ivanka and former British prime minister Theresa May. 
&nbsp;

The coronavirus epidemic could damage global economic growth this year, the IMF head said Sunday, but a sharp and rapid economic rebound could follow. "There may be a cut that we are still hoping would be in the 0.

The coronavirus epidemic could damage global economic growth this year, the IMF head said Sunday, but a sharp and rapid economic rebound could follow. "There may be a cut that we are still hoping would be in the 0.1-0.2 percentage space," the managing director of the International Monetary Fund, Kristalina Georgieva, told the Global Women's Forum in Dubai. She said the full impact of the spreading disease that has already killed more than 1,600 people would depend on how quickly it was contained. "I advise everybody not to jump to premature conclusions. There is still a great deal of uncertainty. We operate with scenarios, not yet with projections, ask me in 10 days," Georgieva said. Also Read: United, Qantas, Virgin Atlantic extend flight ban to China In its January update to the World Economic Outlook, the IMF lowered global economic growth forecast in 2020 by a 0.1 percentage point to 3.3 per cent, following a 2.9 per cent growth the previous year, the lowest in a decade. Georgieva said it was "too early" to assess the full impact of the epidemic but acknowledged that it had already affected sectors such as tourism and transportation. "It is too early to say because we don't yet quite know what is the nature of this virus. We don't know how quickly China will be able to contain it. We don't know whether it will spread to the rest of the world," she said. If the disease is "contained rapidly, there can be a sharp drop and a very rapid rebound", in what is known as the V-shaped impact, she said. Compared to the impact of the Severe Acute Respiratory Syndrome (SARS) in 2002, she said China's economy then made up just 8.0 per cent of the global economy. Now, that figure is 19 per cent. She said the trade agreement between the United States and China, the world's first and second economies, had reduced the disease's impact on the global economy. But the world should be concerned "about sluggish growth" impacted by uncertainty, said the IMF chief. "We are now stuck with low productivity growth, low economic growth, low interest rates and low inflation," she told the Dubai forum, also attended by US President Donald Trump's daughter Ivanka and former British prime minister Theresa May.

Coronavirus could damage global growth in 2020: IMF

The new finance minister of debt-saddled Lebanon met on Saturday with an official from the International Monetary Fund for what he said was a "courtesy visit" and not bailout talks.

Ghazi Wazni's meeting with IMF alternative executive director Sami Geadah came as Lebanon grapples with its worst economic crisis since the 1975-1990 civil war.

The meeting served to "congratulate Lebanon on the formation of a new government," Wazni said on Twitter afterwards.

He had told AFP earlier that it was "a courtesy visit... to get to know the IMF team".

"The discussions will not focus on an economic rescue plan, which is being prepared (separately) inside the government," he added.&nbsp;

It follows a meeting on Friday between Wazni and a delegation from the World Bank-led by its regional director Saroj Kumar Jha.

Wazni assumed the post of finance minister on Tuesday with the formation of a long-awaited cabinet that faces huge economic and political challenges.

The previous government resigned on October 29, two weeks into a nationwide protest movement demanding the removal of politicians deemed incompetent and corrupt.

Wazni comes into the post at a time when the plummeting Lebanon pound has lost over a third of its value against the dollar in the parallel market.

Lebanese banks are tightening restrictions on dollar transactions amid a liquidity crunch.

The economic downturn has raised questions over whether Lebanon will turn to the IMF for a bailout -- an option the government has yet to comment on but which some officials regard as inevitable.

Last month, former prime minister Saad Hariri discussed a possible economic rescue plan with the heads of the IMF and the World Bank, further fuelling speculation of a bailout.

If Lebanon does turn to the IMF it may have to increase its value-added tax, slash subsidies to the state-owned electricity company, tackle rampant corruption and enact a raft of structural reforms, according to previous IMF recommendations.

The new finance minister of debt-saddled Lebanon met on Saturday with an official from the International Monetary Fund for what he said was a "courtesy visit" and not bailout talks.

The new finance minister of debt-saddled Lebanon met on Saturday with an official from the International Monetary Fund for what he said was a "courtesy visit" and not bailout talks. Ghazi Wazni's meeting with IMF alternative executive director Sami Geadah came as Lebanon grapples with its worst economic crisis since the 1975-1990 civil war. The meeting served to "congratulate Lebanon on the formation of a new government," Wazni said on Twitter afterwards. He had told AFP earlier that it was "a courtesy visit... to get to know the IMF team". "The discussions will not focus on an economic rescue plan, which is being prepared (separately) inside the government," he added. It follows a meeting on Friday between Wazni and a delegation from the World Bank-led by its regional director Saroj Kumar Jha. Wazni assumed the post of finance minister on Tuesday with the formation of a long-awaited cabinet that faces huge economic and political challenges. The previous government resigned on October 29, two weeks into a nationwide protest movement demanding the removal of politicians deemed incompetent and corrupt. Wazni comes into the post at a time when the plummeting Lebanon pound has lost over a third of its value against the dollar in the parallel market. Lebanese banks are tightening restrictions on dollar transactions amid a liquidity crunch. The economic downturn has raised questions over whether Lebanon will turn to the IMF for a bailout -- an option the government has yet to comment on but which some officials regard as inevitable. Last month, former prime minister Saad Hariri discussed a possible economic rescue plan with the heads of the IMF and the World Bank, further fuelling speculation of a bailout. If Lebanon does turn to the IMF it may have to increase its value-added tax, slash subsidies to the state-owned electricity company, tackle rampant corruption and enact a raft of structural reforms, according to previous IMF recommendations.

Lebanon's new finance minister meets with IMF official

The International Monetary Fund (IMF) on Monday lowered growth estimate for India to 4.8% for FY20, citing stress in the non-bank financial sector and weak rural income growth as the major factors for the downward revision.

IMF lowers India growth estimate to 4.8% for FY20

The<a href="https://www.wionews.com/opinions/wion-edit-summarising-the-state-of-indian-economy-274415"> International Monetary Fund </a>on Monday slashed its 2020 global growth forecast&nbsp;due to the&nbsp;slowdown&nbsp;in India and other emerging markets.&nbsp;

The sharp drop for India "accounts for the lion's share of the downward revisions," the IMF said.

However, it said that improving <a href="https://www.wionews.com/opinions/explained-how-us-iran-tensions-impact-the-economy-273030">US-China trade tensions </a>have eased uncertainty and the world economy may have hit bottom but a sharp slowdown in India is creating a drag worldwide, the IMF said.

In the latest update to the World Economic Outlook, the IMF trimmed down the global growth estimate for 2020 by one-tenth compared to the October report, dropping it to 3.3 per cent, and lowered the 2021 forecast by a bit more, to 3.4 per cent.

The reductions reflect the IMF's reassessment of economic prospects for a number of major emerging markets, notably India, where domestic demand has slowed&nbsp;sharply amid contraction of credit and stress in the non-banking sector.

<a href="https://www.wionews.com/india-news/india-to-surpass-germany-and-japan-to-become-worlds-third-largest-economy-by-2034-271033">Also read: India to surpass Germany and Japan to become world's third largest economy by 2034</a>

India saw a sharp, 1.2 percentage point cut to its 2020 growth forecast to 5.8 per cent, the IMF's biggest markdown for any emerging market, because of the domestic credit crunch.&nbsp;

Gravitas: Summarising the state of the Indian economy

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The IMF also downgraded other economies&nbsp;including Chile, which has been hit by social unrest. It said that Mexico will grow just 1.0 per cent&nbsp;in 2020, down from 1.3 per cent&nbsp;forecast in October.

Meanwhile, the IMF upgraded China's 2020 growth forecast by 0.2 percentage point to 6.0% because the US trade deal included a partial tariff reduction and cancelled tariffs on Chinese consumer goods that had been scheduled for December. These tariffs had been built into the IMF's previous forecasts.

But the Fund did not give a boost to its US growth forecast for China's pledges to increase purchases of US goods and services by $200 billion over two years. Instead, the IMF said 2020 US growth would be 0.1 percentage point lower than forecast in October, at 2.0% because of the fading stimulus effects from 2017 tax cuts and the Federal Reserve's monetary easing.

(With inputs from agencies)

&nbsp;

The International Monetary Fund on Monday slashed its 2020 global growth forecast due to the slowdown in India and other emerging markets. The sharp drop for India "accounts for the lion's share of the downward revisions," the IMF said.

The International Monetary Fund on Monday slashed its 2020 global growth forecast due to the slowdown in India and other emerging markets. The sharp drop for India "accounts for the lion's share of the downward revisions," the IMF said. However, it said that improving US-China trade tensions have eased uncertainty and the world economy may have hit bottom but a sharp slowdown in India is creating a drag worldwide, the IMF said. In the latest update to the World Economic Outlook, the IMF trimmed down the global growth estimate for 2020 by one-tenth compared to the October report, dropping it to 3.3 per cent, and lowered the 2021 forecast by a bit more, to 3.4 per cent. The reductions reflect the IMF's reassessment of economic prospects for a number of major emerging markets, notably India, where domestic demand has slowed sharply amid contraction of credit and stress in the non-banking sector. Also read: India to surpass Germany and Japan to become world's third largest economy by 2034 India saw a sharp, 1.2 percentage point cut to its 2020 growth forecast to 5.8 per cent, the IMF's biggest markdown for any emerging market, because of the domestic credit crunch. Gravitas: Summarising the state of the Indian economy × The IMF also downgraded other economies including Chile, which has been hit by social unrest. It said that Mexico will grow just 1.0 per cent in 2020, down from 1.3 per cent forecast in October. Meanwhile, the IMF upgraded China's 2020 growth forecast by 0.2 percentage point to 6.0% because the US trade deal included a partial tariff reduction and cancelled tariffs on Chinese consumer goods that had been scheduled for December. These tariffs had been built into the IMF's previous forecasts. But the Fund did not give a boost to its US growth forecast for China's pledges to increase purchases of US goods and services by $200 billion over two years. Instead, the IMF said 2020 US growth would be 0.1 percentage point lower than forecast in October, at 2.0% because of the fading stimulus effects from 2017 tax cuts and the Federal Reserve's monetary easing. (With inputs from agencies)

Sharp slowdown in India drag on world economy, says IMF

Pakistan on Thursday received $452.4 million as a second tranche of the $6 billion loan from the <a href="https://www.wionews.com/india-news/indian-economic-slowdown-international-monetary-fund-calls-for-urgent-action-270004">International Monetary Fund</a> (IMF).

Confirming the report, a spokesperson of the<a href="https://www.wionews.com/south-asia/islamabads-war-on-terror-has-cost-118-bn-state-bank-of-pakistan-8992"> State Bank of Pakistan</a> (SBP) told ARY News that the release of the second tranche amounting to over $452 million showed IMF's confidence over the government's economic policies. The amount will be added to the bank's data next week, he added.

The spokesperson said that the central bank's net reserves increased by $14 million to $10.9 billion during the week ending December 20.

The IMF had approved the second tranche of the loan for Pakistan under the $6 billion Extended Fund Facility in a meeting of its executive board in Washington on December 20.

Pakistan had received the first tranche from IMF under its loan program in July.

The IMF had agreed to the three-year rescue package for Pakistan in April its 13th bailout programme for the South Asian nation since the late 1980s as the economic outlook for the country of 208 million people worsened.

The fiscal deficit of Pakistan's cash-strapped nation has ballooned to about 7 per cent of the <a href="https://www.wionews.com/business-economy/indias-q2-gdp-falls-to-45-lowest-in-6-years-265259">GDP</a> and a balance of payments crisis is looming.

The country has long suffered from a weak tax base, with only about one per cent of its 208 million population filing income tax returns and major industrial sectors dominated by powerful lobbies paying little or no tax.

Pakistan on Thursday received $452.4 million as a second tranche of the $6 billion loan from the International Monetary Fund (IMF). Confirming the report, a spokesperson of the State Bank of Pakistan (SBP) told ARY News that the release of the second tranche amounting to over $452 million showed IMF's confidence over the government's economic policies.

Pakistan on Thursday received $452.4 million as a second tranche of the $6 billion loan from the International Monetary Fund (IMF). Confirming the report, a spokesperson of the State Bank of Pakistan (SBP) told ARY News that the release of the second tranche amounting to over $452 million showed IMF's confidence over the government's economic policies. The amount will be added to the bank's data next week, he added. The spokesperson said that the central bank's net reserves increased by $14 million to $10.9 billion during the week ending December 20. The IMF had approved the second tranche of the loan for Pakistan under the $6 billion Extended Fund Facility in a meeting of its executive board in Washington on December 20. Pakistan had received the first tranche from IMF under its loan program in July. The IMF had agreed to the three-year rescue package for Pakistan in April its 13th bailout programme for the South Asian nation since the late 1980s as the economic outlook for the country of 208 million people worsened. The fiscal deficit of Pakistan's cash-strapped nation has ballooned to about 7 per cent of the GDP and a balance of payments crisis is looming. The country has long suffered from a weak tax base, with only about one per cent of its 208 million population filing income tax returns and major industrial sectors dominated by powerful lobbies paying little or no tax.

Pakistan receives second tranche of $452 million from International Monetary Fund

The Indian economy faces multiple challenges. From slow consumption to falling incomes and low wages.

Less than six months ago — the International Monetary Fund had predicted that the Indian economy will grow by 6.1 per cent this year. 
But — it's not the first time that the economists have got their prediction wrong.

In November — India's GDP growth rate fell to less than five per cent. India's growth rate has been slipping for five quarters now.

The economic data has some clues — that explain the slowdown in India.

The biggest problem seems to be the demand. Key sectors are reporting a drop in their sales.

In September — the auto sales saw their worst ever fall in 21 years.

There was some recovery in November — but there was an overall drop in domestic sales.

India's top consumer goods companies reported a drop in sales all through this year.

The real estate sector remains in a state of a slump.

The IMF has listed weak income growth as one of the reasons behind the slowdown.

India remains a low-middle income country. The average income of an Indian is a little over 10,000 rupees. That's far less than most of the developed powers in the world.

Job creation has also taken a hit

Last year — a government report said that India's unemployment rate was at a 45 year high.

Another assessment claims that India has lost nine million jobs in six years till 2018.

Access to easy credit has also dried up. This was triggered by the collapse of Infrastructure Leasing &amp; Financial Services Limited (IL&amp;FS). The sudden fall of this institution led to a chain reaction.

Access to cheap credit dried up. It had an impact on the operations of several businessmen.

India's state-run banks to have been struggling with non-performing assets.

The slowdown poses a significant challenge to the Modi government.&nbsp;

Even the global economy is in a crisis mode. The world economy is slowing down — and this could exacerbate the crisis in India.

The Indian economy faces multiple challenges. From slow consumption to falling incomes and low wages. Less than six months ago — the International Monetary Fund had predicted that the Indian economy will grow by 6.

The Indian economy faces multiple challenges. From slow consumption to falling incomes and low wages. Less than six months ago — the International Monetary Fund had predicted that the Indian economy will grow by 6.1 per cent this year. But — it's not the first time that the economists have got their prediction wrong. In November — India's GDP growth rate fell to less than five per cent. India's growth rate has been slipping for five quarters now. The economic data has some clues — that explain the slowdown in India. The biggest problem seems to be the demand. Key sectors are reporting a drop in their sales. In September — the auto sales saw their worst ever fall in 21 years. There was some recovery in November — but there was an overall drop in domestic sales. India's top consumer goods companies reported a drop in sales all through this year. The real estate sector remains in a state of a slump. The IMF has listed weak income growth as one of the reasons behind the slowdown. India remains a low-middle income country. The average income of an Indian is a little over 10,000 rupees. That's far less than most of the developed powers in the world. Job creation has also taken a hit Last year — a government report said that India's unemployment rate was at a 45 year high. Another assessment claims that India has lost nine million jobs in six years till 2018. Access to easy credit has also dried up. This was triggered by the collapse of Infrastructure Leasing & Financial Services Limited (IL&FS). The sudden fall of this institution led to a chain reaction. Access to cheap credit dried up. It had an impact on the operations of several businessmen. India's state-run banks to have been struggling with non-performing assets. The slowdown poses a significant challenge to the Modi government. Even the global economy is in a crisis mode. The world economy is slowing down — and this could exacerbate the crisis in India.

Decoding Indian economic slowdown: Slow consumption, falling income, low wages

Amidst a pronounced economic slowdown in <a href="https://www.wionews.com/business-economy/indian-shares-largely-flat-yes-bank-indiabulls-real-estate-rise-269903">India</a>, the <a href="&lt;div class=&quot;videoWrapper trancodeVideo&quot;&gt;&lt;iframe src=&quot;https://www.wionews.com/business-economy/imf-sidesteps-clash-with-us-over-funding-delays-shareholding-changes-to-2023-256885/embed&quot; width=&quot;560&quot; height=&quot;350&quot; style=&quot;width:100%;max-width:560px;&quot; class=&quot;includeVideo&quot; frameborder=&quot;0&quot; autoplay=1 allowfullscreen&gt;&lt;/iframe&gt;&lt;/div&gt;">International Monetary Fund (IMF)</a> issued a warning today calling for immediate action to fix the slowdown. According to IMF, ''urgent policy actions'' are required to reverse the slowdown.

In its annual review, the IMF blamed slowing consumption and investment for crippling the country's GDP growth. The effects are more pronounced because of falling tax revenue, considering India was one of the fastest-growing economies in the world just last year.&nbsp;

According to the report, more efforts by the Indian government are needed to fix the slowdown.

For long, the IMF has maintained a macroeconomic outlook on India which has become more subdued in recent years.

Watch:&nbsp;IMF -&nbsp;India now in midst of major economic slowdown, needs urgent action

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/imf-india-now-in-midst-of-major-economic-slowdown-needs-urgent-action-269964/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The report stressed the importance of long-term remedies but also said that growth has been strong in recent years. However, growth has not led to job creation and low food prices, which is contributing to rural distress.

Earlier in October, the IMF had slashed its forecast for Indian GDP's growth by nearly a full point to 6.1 per cent pertaining to the financial year 2019-20.

Additionally, <a href="https://www.wionews.com/world/lebanon-pm-asks-world-bank-imf-help-with-economic-rescue-plan-267959">the organisation</a> has projected inflation to remain at around 3.4 per cent, with effects of less demand set to become pronounced over the next few months.

Food prices have increased in the country lately, pushing the retail inflation rate in November to a three-year high of 5.54 per cent.

The industrial sector output shrank for the third month in a row in October by 3.8 per cent, further indicating a slowdown in the economy.&nbsp;

Even then, India's fiscal deficit has already crossed 7 trillion Rupees, surpassing the annual target in seven months.&nbsp;

The Reserve Bank of India recently tried to contain the slowdown by cutting the key lending rate five times this year to a nine-year low. However, the policy was kept unchanged in a key meeting earlier this month.

Amidst a pronounced economic slowdown in India, the International Monetary Fund (IMF) issued a warning today calling for immediate action to fix the slowdown. According to IMF, ''urgent policy actions'' are required to reverse the slowdown.

Amidst a pronounced economic slowdown in India, the International Monetary Fund (IMF) issued a warning today calling for immediate action to fix the slowdown. According to IMF, ''urgent policy actions'' are required to reverse the slowdown. In its annual review, the IMF blamed slowing consumption and investment for crippling the country's GDP growth. The effects are more pronounced because of falling tax revenue, considering India was one of the fastest-growing economies in the world just last year. According to the report, more efforts by the Indian government are needed to fix the slowdown. For long, the IMF has maintained a macroeconomic outlook on India which has become more subdued in recent years. Watch: IMF - India now in midst of major economic slowdown, needs urgent action The report stressed the importance of long-term remedies but also said that growth has been strong in recent years. However, growth has not led to job creation and low food prices, which is contributing to rural distress. Earlier in October, the IMF had slashed its forecast for Indian GDP's growth by nearly a full point to 6.1 per cent pertaining to the financial year 2019-20. Additionally, the organisation has projected inflation to remain at around 3.4 per cent, with effects of less demand set to become pronounced over the next few months. Food prices have increased in the country lately, pushing the retail inflation rate in November to a three-year high of 5.54 per cent. The industrial sector output shrank for the third month in a row in October by 3.8 per cent, further indicating a slowdown in the economy. Even then, India's fiscal deficit has already crossed 7 trillion Rupees, surpassing the annual target in seven months. The Reserve Bank of India recently tried to contain the slowdown by cutting the key lending rate five times this year to a nine-year low. However, the policy was kept unchanged in a key meeting earlier this month.

Indian economic slowdown: International Monetary Fund calls for 'urgent' action

At a time when India's economy is suffering from an acute slowdown, the International Monetary Fund (IMF) has issued a warning and said the current downturn can only be reversed through "urgent" policy actions. IMF in its annual review said declining consumption and investment accompanied by falling tax revenue have arrested India's GDP growth, which was one of the fastest in the world just a year ago. #IndiaGDP #IMF #India #IndiaGDPGrowth

IMF: India now in midst of major economic slowdown, needs urgent action

Lebanon's caretaker prime minister Thursday asked international funding bodies for support in drawing up an emergency rescue plan for his protest-wracked country.

Donors including the World Bank and the International Monetary Fund on Wednesday rebuffed a plea for financial aid pending the rapid formation of a new government to implement key economic reforms.

Caretaker premier Saad Hariri on Thursday made phone calls to World Bank president David Malpass and IMF managing director Kristalina Georgieva, his office said.

"Hariri stressed his commitment to preparing an urgent rescue plan to resolve the crisis while waiting for the formation of a new cabinet able to implement it," it said in a statement.

"He discussed with both the technical support the Work Bank and IMF could provide in drawing up this plan," it added.

Lebanon has been rocked by unprecedented popular protests since October 17 over official mismanagement and corruption demonstrators blame for a deteriorating economy.

In a country where the local currency is pegged to the US dollar and used in everyday transactions, banks have gradually restricted greenback withdrawals, causing a dollar liquidity crisis that has made imports increasingly difficult and expensive.

Hariri also spoke to the president of the World Bank about "the possibility of the bank... increasing its contribution to funding international trade to Lebanon" to help importers bring in essential goods.

Lebanon has been without a cabinet since Hariri stepped down on October 29, with a bitterly divided political class unable to agree on a new premier ever since.

Protesters have demanded a new government composed entirely of independent experts, but analysts say this may be a tall order.

Parliamentary consultations are expected to start towards naming a new prime minister on Monday after the Sunni Muslim religious establishment rejected an alternative candidate for premier and threw its support behind Hariri.

Growth in Lebanon has plummeted in the wake of endless political deadlock in recent years, compounded by the 2011 breakout of civil war in neighbouring Syria.

A recession of more than 0.2 per cent is expected for this year, the World Bank says.

On Thursday, rating agency Fitch also bumped Lebanon down to "CC" from "CCC", after an initial downgrade in August.

"The downgrade of Lebanon's ratings reflects Fitch's view that a government debt restructuring or default is probably owing to acute political uncertainty, de facto capital controls and damaged confidence in the banking sector," it said in a statement.

Lebanon's caretaker prime minister Thursday asked international funding bodies for support in drawing up an emergency rescue plan for his protest-wracked country.

Lebanon's caretaker prime minister Thursday asked international funding bodies for support in drawing up an emergency rescue plan for his protest-wracked country. Donors including the World Bank and the International Monetary Fund on Wednesday rebuffed a plea for financial aid pending the rapid formation of a new government to implement key economic reforms. Caretaker premier Saad Hariri on Thursday made phone calls to World Bank president David Malpass and IMF managing director Kristalina Georgieva, his office said. "Hariri stressed his commitment to preparing an urgent rescue plan to resolve the crisis while waiting for the formation of a new cabinet able to implement it," it said in a statement. "He discussed with both the technical support the Work Bank and IMF could provide in drawing up this plan," it added. Lebanon has been rocked by unprecedented popular protests since October 17 over official mismanagement and corruption demonstrators blame for a deteriorating economy. In a country where the local currency is pegged to the US dollar and used in everyday transactions, banks have gradually restricted greenback withdrawals, causing a dollar liquidity crisis that has made imports increasingly difficult and expensive. Hariri also spoke to the president of the World Bank about "the possibility of the bank... increasing its contribution to funding international trade to Lebanon" to help importers bring in essential goods. Lebanon has been without a cabinet since Hariri stepped down on October 29, with a bitterly divided political class unable to agree on a new premier ever since. Protesters have demanded a new government composed entirely of independent experts, but analysts say this may be a tall order. Parliamentary consultations are expected to start towards naming a new prime minister on Monday after the Sunni Muslim religious establishment rejected an alternative candidate for premier and threw its support behind Hariri. Growth in Lebanon has plummeted in the wake of endless political deadlock in recent years, compounded by the 2011 breakout of civil war in neighbouring Syria. A recession of more than 0.2 per cent is expected for this year, the World Bank says. On Thursday, rating agency Fitch also bumped Lebanon down to "CC" from "CCC", after an initial downgrade in August. "The downgrade of Lebanon's ratings reflects Fitch's view that a government debt restructuring or default is probably owing to acute political uncertainty, de facto capital controls and damaged confidence in the banking sector," it said in a statement.

Lebanon PM asks World Bank, IMF help with economic rescue plan

The International Monetary Fund said Saturday it had reached an agreement in principle with Ukraine on a new $5.5 billion, three-year aid program for the war-scarred country.

IMF Managing Director Kristalina Georgieva welcomed the deal, adding it was subject to IMF management approval.

Georgieva said she spoke by telephone on Saturday to President Volodymyr Zelensky and commended him on "impressive progress" on reforms and "sound economic policies."

"The President and I agreed that Ukraine's economic success depends crucially on strengthening the rule of law, enhancing the integrity of the judiciary, and reducing the role of vested interests," she said.

She added that it was "paramount to safeguard the gains made in cleaning up the banking system and recover the large costs to the taxpayers from bank resolutions."

The IMF and other international donors have repeatedly pressed Kiev to attract much-needed investment by addressing pervasive corruption and reducing the power of oligarchs.

But bankers and analysts said they fear the current authorities are targeting former bankers who have helped clean up the market instead of the oligarch owners of banks that go bankrupt.

Georgieva said that the effectiveness of the new program would be "conditional on the implementation of a set of prior actions."

War budget

Ukrainian lawmakers in November authorized an increase in defence spending to record levels as Zelensky vows to end the country's long conflict with Russian-backed separatists.

Approving the 2020 budget, lawmakers voted for a 16 per cent increase in both defence and security spending, bringing it to nearly $10 billion, or 5.45 per cent of gross domestic product.

At his inauguration in May, the 41-year-old president -- a former comedian -- urged people with Ukrainian heritage to return home and help build a "new, strong and successful Ukraine."

The country is also in the spotlight due to the impeachment proceedings against US President Donald Trump.

Trump is accused of abusing his office by pressuring Ukraine to find dirt on former US vice president Joe Biden, his potential challenger in the 2020 election.

The White House maintains Trump was simply encouraging the new government of Ukraine to rein in corruption.

More than 13,000 people have been killed in Ukraine's conflict with separatists in the industrial east which broke out shortly after Moscow annexed Crimea in 2014.

Ukraine's economy has been hit hard by the conflict and the country has struggled to keep up with arms purchases.

It is also reliant on foreign military help, including aid from the United States that was temporarily frozen this year in a move now being scrutinized in the impeachment probe.

Ukraine's overall budget for 2020 set an economic growth target of 3.7 per cent. It also set a deficit of 2.09 per cent -- in line with requirements of the IMF.

The International Monetary Fund said Saturday it had reached an agreement in principle with Ukraine on a new $5.5 billion, three-year aid program for the war-scarred country.

The International Monetary Fund said Saturday it had reached an agreement in principle with Ukraine on a new $5.5 billion, three-year aid program for the war-scarred country. IMF Managing Director Kristalina Georgieva welcomed the deal, adding it was subject to IMF management approval. Georgieva said she spoke by telephone on Saturday to President Volodymyr Zelensky and commended him on "impressive progress" on reforms and "sound economic policies." "The President and I agreed that Ukraine's economic success depends crucially on strengthening the rule of law, enhancing the integrity of the judiciary, and reducing the role of vested interests," she said. She added that it was "paramount to safeguard the gains made in cleaning up the banking system and recover the large costs to the taxpayers from bank resolutions." The IMF and other international donors have repeatedly pressed Kiev to attract much-needed investment by addressing pervasive corruption and reducing the power of oligarchs. But bankers and analysts said they fear the current authorities are targeting former bankers who have helped clean up the market instead of the oligarch owners of banks that go bankrupt. Georgieva said that the effectiveness of the new program would be "conditional on the implementation of a set of prior actions." War budget Ukrainian lawmakers in November authorized an increase in defence spending to record levels as Zelensky vows to end the country's long conflict with Russian-backed separatists. Approving the 2020 budget, lawmakers voted for a 16 per cent increase in both defence and security spending, bringing it to nearly $10 billion, or 5.45 per cent of gross domestic product. At his inauguration in May, the 41-year-old president -- a former comedian -- urged people with Ukrainian heritage to return home and help build a "new, strong and successful Ukraine." The country is also in the spotlight due to the impeachment proceedings against US President Donald Trump. Trump is accused of abusing his office by pressuring Ukraine to find dirt on former US vice president Joe Biden, his potential challenger in the 2020 election. The White House maintains Trump was simply encouraging the new government of Ukraine to rein in corruption. More than 13,000 people have been killed in Ukraine's conflict with separatists in the industrial east which broke out shortly after Moscow annexed Crimea in 2014. Ukraine's economy has been hit hard by the conflict and the country has struggled to keep up with arms purchases. It is also reliant on foreign military help, including aid from the United States that was temporarily frozen this year in a move now being scrutinized in the impeachment probe. Ukraine's overall budget for 2020 set an economic growth target of 3.7 per cent. It also set a deficit of 2.09 per cent -- in line with requirements of the IMF.

International Monetary Fund and Ukraine reach tentative $5.5 billion aid deal

The <a href="https://www.wionews.com/south-asia/asian-development-bank-approves-lending-27-billion-to-pakistan-254799">Asian Development Bank</a> (ADB) on Friday approved a $1 billion emergency loan for cash strapped Pakistan to provide support to the country`s public finances and help strengthen its slowing economy.

The loan is part of a multi-donor economic reform program led by the <a href="https://www.wionews.com/south-asia/international-monetary-fund-approves-450-million-loan-to-pakistan-as-part-of-three-year-package-260967">International Monetary Fund</a> (IMF) to stabilise Pakistan's economy after it crumbled in mid-2018 and caused the "growth to slump and threatened (the country`s) progress in alleviating poverty," the ADB said in a statement.

The financing was approved after the Pakistan government implemented a series of IMF-supported reforms and actions to improve its current account deficit, strengthen its revenue base, and protect the poor against the social impact of the economic crisis.

Commenting on the same, Werner Liepach, ADB Director General for Central and West Asia said that the funds would meet the government`s emergency financing needs to prevent significant adverse social and economic impacts and lay the foundations for a return to balanced growth.

"<a href="https://www.wionews.com/south-asia/pakistan-submits-compliance-report-to-fatf-266131">Pakistan</a> is facing significant economic challenges on the back of a large balance of payments gap and critically low foreign exchange reserves together with weak and unbalanced growth," the ADB`s statement read.

Back in July this year, the IMF had approved a three-year USD 6 billion Extended Fund Facility (EFF) to finance the government`s economic reform program that aims to put Pakistan`s economy on the path of sustainable and inclusive growth.

"The EFF is expected to catalyze at least $38 billion in financing from Pakistan`s development partners. ADB has committed to provide a total of $2.1 billion in policy-based lending during (the) fiscal year 2019-2020 to support the reform program," it added.

The Asian Development Bank (ADB) on Friday approved a $1 billion emergency loan for cash strapped Pakistan to provide support to the country`s public finances and help strengthen its slowing economy.

The Asian Development Bank (ADB) on Friday approved a $1 billion emergency loan for cash strapped Pakistan to provide support to the country`s public finances and help strengthen its slowing economy. The loan is part of a multi-donor economic reform program led by the International Monetary Fund (IMF) to stabilise Pakistan's economy after it crumbled in mid-2018 and caused the "growth to slump and threatened (the country`s) progress in alleviating poverty," the ADB said in a statement. The financing was approved after the Pakistan government implemented a series of IMF-supported reforms and actions to improve its current account deficit, strengthen its revenue base, and protect the poor against the social impact of the economic crisis. Commenting on the same, Werner Liepach, ADB Director General for Central and West Asia said that the funds would meet the government`s emergency financing needs to prevent significant adverse social and economic impacts and lay the foundations for a return to balanced growth. "Pakistan is facing significant economic challenges on the back of a large balance of payments gap and critically low foreign exchange reserves together with weak and unbalanced growth," the ADB`s statement read. Back in July this year, the IMF had approved a three-year USD 6 billion Extended Fund Facility (EFF) to finance the government`s economic reform program that aims to put Pakistan`s economy on the path of sustainable and inclusive growth. "The EFF is expected to catalyze at least $38 billion in financing from Pakistan`s development partners. ADB has committed to provide a total of $2.1 billion in policy-based lending during (the) fiscal year 2019-2020 to support the reform program," it added.

Asian Development Bank approves $1 billion emergency loan for Pakistan

Hong Kong's government pledged HK$4 billion ($511 million) on Wednesday in new relief measures to help bolster an economy battered by months of protests that have eroded business confidence in the Asian financial hub.

The latest boost brings the government's total pledged amount of relief to HK$25 billion ($3.2 billion). It remains to be seen whether that will be enough to help the economy, reeling from a drop-off in tourism and a record decline in retail sales.

The <a href="https://www.wionews.com/opinions/the-corrupt-pillars-of-climate-change-denial-265220">International Monetary Fund</a> on Wednesday urged the government to deliver "significantly" more fiscal stimulus to address the downturn and longer-term structural issues such as insufficient housing and income inequality.

"During an economic downturn, supporting employment is the number one priority of the government," Financial Secretary Paul Chan said as he announced the package.

Chan described the measures as mainly aimed at helping small and medium-sized businesses, in order to safeguard jobs. He told reporters that the anti-Beijing demonstrations had hurt international investor confidence in the China-ruled city.

Business activity in Hong Kong contracted at the fastest pace in 21 years in November, dragged down by the protests and softening global demand, an IHS Markit survey showed on Wednesday.

Asia's largest distributor of luxury brands, the<a href="https://www.wionews.com/world/hong-kong-police-retrieve-another-round-of-petrol-bombs-from-university-266074"> Bluebell group</a>, has appealed to Hong Kong landlords to scrap the base rent in shopping malls, saying a slump in tourist spending will push even more retailers out of business.

Hong Kong recorded its largest-ever retail collapse in October, with sales dropping 24.3 percent to HK$30.1 billion, the government said Monday.

Sparked by a controversial and since-withdrawn extradition bill, the protests have swelled into broader calls for greater democratic freedoms.

Those who have joined the pro-democracy demonstrations accuse China of increasingly interfering in freedoms promised to the former British colony when it was returned to Chinese rule in 1997.

Hong Kong's government pledged HK$4 billion ($511 million) on Wednesday in new relief measures to help bolster an economy battered by months of protests that have eroded business confidence in the Asian financial hub.

Hong Kong's government pledged HK$4 billion ($511 million) on Wednesday in new relief measures to help bolster an economy battered by months of protests that have eroded business confidence in the Asian financial hub. The latest boost brings the government's total pledged amount of relief to HK$25 billion ($3.2 billion). It remains to be seen whether that will be enough to help the economy, reeling from a drop-off in tourism and a record decline in retail sales. The International Monetary Fund on Wednesday urged the government to deliver "significantly" more fiscal stimulus to address the downturn and longer-term structural issues such as insufficient housing and income inequality. "During an economic downturn, supporting employment is the number one priority of the government," Financial Secretary Paul Chan said as he announced the package. Chan described the measures as mainly aimed at helping small and medium-sized businesses, in order to safeguard jobs. He told reporters that the anti-Beijing demonstrations had hurt international investor confidence in the China-ruled city. Business activity in Hong Kong contracted at the fastest pace in 21 years in November, dragged down by the protests and softening global demand, an IHS Markit survey showed on Wednesday. Asia's largest distributor of luxury brands, the Bluebell group, has appealed to Hong Kong landlords to scrap the base rent in shopping malls, saying a slump in tourist spending will push even more retailers out of business. Hong Kong recorded its largest-ever retail collapse in October, with sales dropping 24.3 percent to HK$30.1 billion, the government said Monday. Sparked by a controversial and since-withdrawn extradition bill, the protests have swelled into broader calls for greater democratic freedoms. Those who have joined the pro-democracy demonstrations accuse China of increasingly interfering in freedoms promised to the former British colony when it was returned to Chinese rule in 1997.

Hong Kong government tops up stimulus with extra HK$4 billion

Thousands of <a href="https://www.wionews.com/videos/thousands-join-azadi-march-against-imran-khans-govt-in-pakistan-258908">anti-government demonstrators</a> were due in the&nbsp;Pakistani&nbsp;capital&nbsp;on Thursday to&nbsp;demand&nbsp;that the government step down, piling more pressure on Prime Minister Imran Khan as he strives to get the faltering economy on track.

The protests are organised by Fazl-ur-Rehman, the leader of one of Pakistan's largest religious parties, who says the government of cricketer-turned-politician Khan is incompetent and illegitimate and was installed by the military after a rigged election last year.

Schools and some offices were closed in Islamabad as the&nbsp;protesters&nbsp;made their way from the eastern city of Lahore. They were due to arrive later in the day.

Police have <a href="https://www.wionews.com/south-asia/pakistan-ramps-up-security-in-capital-ahead-of-islamist-march-258662">reinforced checkpoints</a> and brought in extra barriers, including shipping containers to block roads and seal off the administrative and diplomatic heart of the city.

Rehman, who heads the Jamiat Ulema-i-Islam-Fazl party, has billed his protest as an Azadi, or freedom, march.

"This movement will not stop if we don't get the desired results after reaching Islamabad," Rehman told reporters in Lahore late on Thursday.

"We want the prime minister's resignation, the entire assembly is fake, we want to dissolve it."

Khan won last year's election on a promise to end corruption, help middle-class families and get the economy on track.

But the honeymoon has come to an end as the economy runs into headwinds with the fiscal deficit ballooning to about 7 per cent&nbsp;of gross domestic product and a balance of payments crisis is looming.

Consumer inflation increased to 11.37 per cent&nbsp;year-on-year in September from 10.49 per cent&nbsp;in August largely on food price rises, while the rupee has fallen more than 50 per cent&nbsp;against the dollar since the end of 2017.

The government agreed in July to a $6 billion bailout from the International Monetary Fund.

Khan rejects his critics' accusations that he is backed by the military, which has a long record of intervention in politics. The military also denies any involvement in civilian politics.

Election authorities rejected opposition complaints of rigging in the 2018 vote.

Rehman is a veteran politician who heads an alliance with several seats in the National Assembly and provincial assemblies.

But his real influence comes from his ability to mobilise support, particularly in numerous religious schools, or madrasas, across the country.

Pakistan's two main opposition parties have both said they would back Rehman's campaign against Khan, though have also said they would not support any unconstitutional action.

The government has said it wants negotiations with the opposition while vowing that no one would be allowed to paralyse life in the&nbsp;capital.

Thousands of anti-government demonstrators were due in the Pakistani capital on Thursday to demand that the government step down, piling more pressure on Prime Minister Imran Khan as he strives to get the faltering economy on track.

Thousands of anti-government demonstrators were due in the Pakistani capital on Thursday to demand that the government step down, piling more pressure on Prime Minister Imran Khan as he strives to get the faltering economy on track. The protests are organised by Fazl-ur-Rehman, the leader of one of Pakistan's largest religious parties, who says the government of cricketer-turned-politician Khan is incompetent and illegitimate and was installed by the military after a rigged election last year. Schools and some offices were closed in Islamabad as the protesters made their way from the eastern city of Lahore. They were due to arrive later in the day. Police have reinforced checkpoints and brought in extra barriers, including shipping containers to block roads and seal off the administrative and diplomatic heart of the city. Rehman, who heads the Jamiat Ulema-i-Islam-Fazl party, has billed his protest as an Azadi, or freedom, march. "This movement will not stop if we don't get the desired results after reaching Islamabad," Rehman told reporters in Lahore late on Thursday. "We want the prime minister's resignation, the entire assembly is fake, we want to dissolve it." Khan won last year's election on a promise to end corruption, help middle-class families and get the economy on track. But the honeymoon has come to an end as the economy runs into headwinds with the fiscal deficit ballooning to about 7 per cent of gross domestic product and a balance of payments crisis is looming. Consumer inflation increased to 11.37 per cent year-on-year in September from 10.49 per cent in August largely on food price rises, while the rupee has fallen more than 50 per cent against the dollar since the end of 2017. The government agreed in July to a $6 billion bailout from the International Monetary Fund. Khan rejects his critics' accusations that he is backed by the military, which has a long record of intervention in politics. The military also denies any involvement in civilian politics. Election authorities rejected opposition complaints of rigging in the 2018 vote. Rehman is a veteran politician who heads an alliance with several seats in the National Assembly and provincial assemblies. But his real influence comes from his ability to mobilise support, particularly in numerous religious schools, or madrasas, across the country. Pakistan's two main opposition parties have both said they would back Rehman's campaign against Khan, though have also said they would not support any unconstitutional action. The government has said it wants negotiations with the opposition while vowing that no one would be allowed to paralyse life in the capital.

Pakistani protesters descend on capital to demand Prime Minister Khan quits

The International Monetary Fund (IMF) said it is assessing an emergency reform package announced by Lebanon's government last week and stressed reforms should be implemented urgently given the country's high debt levels and fiscal deficits.

Also read:&nbsp;<a href="https://www.wionews.com/world/with-lebanon-in-deadlock-protesters-form-human-chain-258437">With Lebanon in deadlock, protesters form human chain</a>

Lebanon has been swept by over 10 days of protests against a political class accused of corruption, mismanagement of state finances and pushing the country toward an economic collapse unseen since the 1975-90 civil war.

Last week the government unveiled a set of measures aimed partly at appeasing demonstrators and convincing foreign donors it can slash next year's budget deficit.

But the emergency reform package failed to persuade demonstrators to leave the streets or investors to halt a plunge in its bonds.

"We're studying it, we need to see not only what is in the package but also the timeline of the package for a country like Lebanon that has such high level of debt over GDP (gross domestic product) and high levels of twin deficits," Jihad Azour, director of the IMF's Middle East and Central Asia Department told Reuters.

Lebanon has one of the world's highest levels of government debt as a share of economic output. The IMF has forecast a fiscal deficit of 9.8% of GDP this year and 11.5% next year.

Prime Minister Saad al-Hariri said the emergency measures introduced last week – which included the symbolic halving of the salaries of ministers and lawmakers – might not meet the protesters' demands but were a start towards achieving some of them.

"Fundamental reforms are urgently needed in Lebanon in order to restore macro-economic stability, bring confidence back, stimulate growth and provide some solutions to the issues that were raised by the street," IMF's Azour said.

The Lebanese government is planning to accelerate a long-delayed reform of the state-run power sector, which drains $2 billion from the treasury per year while failing to deliver enough power for Lebanese.

Azour said that to restore confidence in the economy some of the long-awaited reforms in the energy and telecom sectors must be "clearly implemented with a very articulate timetable."

He said the fund was in regular discussions with the Lebanese authorities but that they had not asked the IMF to provide programme funding.

The International Monetary Fund (IMF) said it is assessing an emergency reform package announced by Lebanon's government last week and stressed reforms should be implemented urgently given the country's high debt levels and fiscal deficits.

The International Monetary Fund (IMF) said it is assessing an emergency reform package announced by Lebanon's government last week and stressed reforms should be implemented urgently given the country's high debt levels and fiscal deficits. Also read: With Lebanon in deadlock, protesters form human chain Lebanon has been swept by over 10 days of protests against a political class accused of corruption, mismanagement of state finances and pushing the country toward an economic collapse unseen since the 1975-90 civil war. Last week the government unveiled a set of measures aimed partly at appeasing demonstrators and convincing foreign donors it can slash next year's budget deficit. But the emergency reform package failed to persuade demonstrators to leave the streets or investors to halt a plunge in its bonds. "We're studying it, we need to see not only what is in the package but also the timeline of the package for a country like Lebanon that has such high level of debt over GDP (gross domestic product) and high levels of twin deficits," Jihad Azour, director of the IMF's Middle East and Central Asia Department told Reuters. Lebanon has one of the world's highest levels of government debt as a share of economic output. The IMF has forecast a fiscal deficit of 9.8% of GDP this year and 11.5% next year. Prime Minister Saad al-Hariri said the emergency measures introduced last week – which included the symbolic halving of the salaries of ministers and lawmakers – might not meet the protesters' demands but were a start towards achieving some of them. "Fundamental reforms are urgently needed in Lebanon in order to restore macro-economic stability, bring confidence back, stimulate growth and provide some solutions to the issues that were raised by the street," IMF's Azour said. The Lebanese government is planning to accelerate a long-delayed reform of the state-run power sector, which drains $2 billion from the treasury per year while failing to deliver enough power for Lebanese. Azour said that to restore confidence in the economy some of the long-awaited reforms in the energy and telecom sectors must be "clearly implemented with a very articulate timetable." He said the fund was in regular discussions with the Lebanese authorities but that they had not asked the IMF to provide programme funding.

IMF stresses urgency of reforms in Lebanon to restore economic stability

The International Monetary Fund said on Friday its 189 member countries agreed to maintain the IMF's $1 trillion in total lending resources while delaying changes to its shareholding structure to as late as December 2023.

The move ends a deadlock with the United States, which had opposed shareholding changes that would give a bigger voice to China and other large, fast-growing emerging markets in a review process that was due for completion this year.

IMF Managing Director Kristalina Georgieva announced the decision at the Fund's and World Bank's annual meetings, saying that the initiative will provide confidence that the IMF can adequately support member countries as they deal with slowing global growth.

US Treasury Secretary Steven Mnuchin, who holds an effective veto over major Fund decisions, endorsed the move, which calls for a doubling of the IMF's crisis lending fund to about $500 billion, restoring it to levels during the 2008-09 financial crisis. It would be accompanied by a reduction in bilateral lending arrangement to keep overall IMF resources unchanged.

But it would require the United States to double its commitment by contributing about $38 billion to the fund, known as the New Arrangements to Borrow (NAB), a move that would need approval from the US Congress.

"We continue to support efforts to maintain the IMF's current resources so that the IMF is sufficiently equipped to respond to potential crises over the medium term," Mnuchin said in a statement to the IMF's steering committee.

In April, Mnuchin said he was firmly opposed to increasing the IMF's overall funding and altering shareholding quotas.

"In our view, the IMF currently has ample resources to achieve its mission," he said at the time.

The New Arrangements to Borrow, first launched in 1998 and increased 10-fold during the financial crisis a decade later, were due to expire in 2022.

Bilateral lending arrangements, totalling about $440 billion, were due to expire at the end of 2019. These will be extended for a year to buy governments time to approve the changes.

But the deal puts off for four years a reckoning over how the growing influence in the global economy of China, Brazil and India will be reflected in the governance of the IMF.

The IMF's bylaws drafted at the end of World War Two require the Fund to be headquartered in the world's largest economy - which may require a shift in coming decades based on forecasts that China's GDP will eventually exceed that of the United States.

The deal preserves the US veto power at the IMF and ends a deadlock over quotas while avoiding a bigger share for China for the time being, said Mark Sobel, a former US Treasury official and US executive director at the IMF.

"This is second-best compared to a quota increase, but it merits support," added Sobel, who is now with the Official Monetary and Financial Institutions Forum think-tank.

It also may be an easier sell to Congress, which balked for years at the last quota increase agreed in 2010 that boosted China's and other emerging markets' voting power and shrunk that of European countries. Those changes were not implemented until 2016 after Congress approved it in a spending bill.

The International Monetary Fund said on Friday its 189 member countries agreed to maintain the IMF's $1 trillion in total lending resources while delaying changes to its shareholding structure to as late as December 2023.

The International Monetary Fund said on Friday its 189 member countries agreed to maintain the IMF's $1 trillion in total lending resources while delaying changes to its shareholding structure to as late as December 2023. The move ends a deadlock with the United States, which had opposed shareholding changes that would give a bigger voice to China and other large, fast-growing emerging markets in a review process that was due for completion this year. IMF Managing Director Kristalina Georgieva announced the decision at the Fund's and World Bank's annual meetings, saying that the initiative will provide confidence that the IMF can adequately support member countries as they deal with slowing global growth. US Treasury Secretary Steven Mnuchin, who holds an effective veto over major Fund decisions, endorsed the move, which calls for a doubling of the IMF's crisis lending fund to about $500 billion, restoring it to levels during the 2008-09 financial crisis. It would be accompanied by a reduction in bilateral lending arrangement to keep overall IMF resources unchanged. But it would require the United States to double its commitment by contributing about $38 billion to the fund, known as the New Arrangements to Borrow (NAB), a move that would need approval from the US Congress. "We continue to support efforts to maintain the IMF's current resources so that the IMF is sufficiently equipped to respond to potential crises over the medium term," Mnuchin said in a statement to the IMF's steering committee. In April, Mnuchin said he was firmly opposed to increasing the IMF's overall funding and altering shareholding quotas. "In our view, the IMF currently has ample resources to achieve its mission," he said at the time. The New Arrangements to Borrow, first launched in 1998 and increased 10-fold during the financial crisis a decade later, were due to expire in 2022. Bilateral lending arrangements, totalling about $440 billion, were due to expire at the end of 2019. These will be extended for a year to buy governments time to approve the changes. But the deal puts off for four years a reckoning over how the growing influence in the global economy of China, Brazil and India will be reflected in the governance of the IMF. The IMF's bylaws drafted at the end of World War Two require the Fund to be headquartered in the world's largest economy - which may require a shift in coming decades based on forecasts that China's GDP will eventually exceed that of the United States. The deal preserves the US veto power at the IMF and ends a deadlock over quotas while avoiding a bigger share for China for the time being, said Mark Sobel, a former US Treasury official and US executive director at the IMF. "This is second-best compared to a quota increase, but it merits support," added Sobel, who is now with the Official Monetary and Financial Institutions Forum think-tank. It also may be an easier sell to Congress, which balked for years at the last quota increase agreed in 2010 that boosted China's and other emerging markets' voting power and shrunk that of European countries. Those changes were not implemented until 2016 after Congress approved it in a spending bill.

IMF sidesteps clash with US over funding, delays shareholding changes to 2023

United States&nbsp;Treasury Secretary Steven Mnuchin on Friday said he welcomes a proposal to double the size of the International Monetary Fund's $250 billion&nbsp;crisis lending fund as part of a deal to maintain overall IMF resources.

Mnuchin, in a statement to the IMF's steering committee, said he backed the funding increase to ensure the global lender remained adequately resourced to respond to potential crises over the medium term.

He also called for various reforms to streamline the fund's costs, modernise salaries and benefits, and adopt a more independent, centralised risk management system.

United States Treasury Secretary Steven Mnuchin on Friday said he welcomes a proposal to double the size of the International Monetary Fund's $250 billion crisis lending fund as part of a deal to maintain overall IMF resources.

United States Treasury Secretary Steven Mnuchin on Friday said he welcomes a proposal to double the size of the International Monetary Fund's $250 billion crisis lending fund as part of a deal to maintain overall IMF resources. Mnuchin, in a statement to the IMF's steering committee, said he backed the funding increase to ensure the global lender remained adequately resourced to respond to potential crises over the medium term. He also called for various reforms to streamline the fund's costs, modernise salaries and benefits, and adopt a more independent, centralised risk management system.

Steven Mnuchin backs proposal to double International Monetary Fund's crisis fund

The Lebanese government faced calls to resign Thursday after thousands of furious demonstrators took to the streets across the country to protest dire economic conditions.

Public anger has simmered since parliament passed an austerity budget in July to help trim a ballooning deficit and flared on Thursday over plans to tax calls on messaging applications, forcing the government to axe the unpopular measure.

Across the country, demonstrators chanted the popular refrain of the 2011 Arab Spring protests: "The people demand the fall of the regime."

Protesters in the capital blocked the road to the airport with burning tyres, prompting a heavy deployment by security forces.

Near government headquarters in central Beirut, violent confrontations broke out between protesters and security forces as demonstrators tried to storm the building.

Security forces fired tear gas to disperse protesters after the Internal Security Forces (ISF) said clashes wounded 40 of its members.

Protesters also sparked a large blaze near the Mohammad al-Amin mosque in Downtown Beirut.

"We elected them and we will remove them from power," one protester told a local TV station.

"What unites us is the standard of living -- we are all destroyed," said another.

Besides the capital Beirut, protests erupted in the southern city of Sidon, the northern city of Tripoli and the Bekaa Valley, before spreading to other areas, the state-run National News Agency reported.

Telecommunications Minister Mohammad Choucair said that the government had reversed its decision to tax calls on messaging apps following the unrest.

The government is weighing a series of further belt-tightening measures it hopes will rescue the ailing economy and secure $11 billion in aid pledged by international donors last year.

It is expected to announce a series of tax hikes in the coming months as part of next year's budget.

Thursday's far-reaching protests prompted calls by senior officials for the government to resign, with influential Druze politician Walid Jumblatt saying he had urged the prime minister to step down.

Interior Minister Raya al-Hassan said the prime minister will deliver a speech on Friday.

"If this government falls, the government that will come after will not have better options," she said in a statement carried by NNA.

The education ministry said schools and universities would be closed on Friday.

Earlier on Thursday, Information Minister Jamal Jarrah had announced a 20-cent daily fee for messaging app users who made calls on platforms such as WhatsApp and Viber, sparking public outrage.

He told reporters after a cabinet session the move would bring $200 million annually into government coffers.

Lebanese digital rights group SMEX said the country's main mobile operators were already planning to introduce new technology that will allow them to detect whether users are trying to make internet calls using their networks.

"Lebanon already has some of the highest mobile prices in the region," SMEX said on Twitter.

The latest policy "will force users to pay for internet services twice", it added.

Growth in Lebanon has plummeted in the wake of repeated political deadlocks in recent years, compounded by the impact of eight years of war in neighbouring Syria.

"Most high-frequency indicators point towards a continuation of weak growth in 2019," the International Monetary Fund said Thursday.

Lebanon's public debt stands at around $86 billion, higher than 150 per cent of gross domestic product, according to the finance ministry.

Eighty per cent of that figure is owed to Lebanon's central bank and local banks.

Last month, banks and money exchange houses rationed dollar sales, sparking fears of a currency devaluation.

The Lebanese government faced calls to resign Thursday after thousands of furious demonstrators took to the streets across the country to protest dire economic conditions.

The Lebanese government faced calls to resign Thursday after thousands of furious demonstrators took to the streets across the country to protest dire economic conditions. Public anger has simmered since parliament passed an austerity budget in July to help trim a ballooning deficit and flared on Thursday over plans to tax calls on messaging applications, forcing the government to axe the unpopular measure. Across the country, demonstrators chanted the popular refrain of the 2011 Arab Spring protests: "The people demand the fall of the regime." Protesters in the capital blocked the road to the airport with burning tyres, prompting a heavy deployment by security forces. Near government headquarters in central Beirut, violent confrontations broke out between protesters and security forces as demonstrators tried to storm the building. Security forces fired tear gas to disperse protesters after the Internal Security Forces (ISF) said clashes wounded 40 of its members. Protesters also sparked a large blaze near the Mohammad al-Amin mosque in Downtown Beirut. "We elected them and we will remove them from power," one protester told a local TV station. "What unites us is the standard of living -- we are all destroyed," said another. Besides the capital Beirut, protests erupted in the southern city of Sidon, the northern city of Tripoli and the Bekaa Valley, before spreading to other areas, the state-run National News Agency reported. Telecommunications Minister Mohammad Choucair said that the government had reversed its decision to tax calls on messaging apps following the unrest. The government is weighing a series of further belt-tightening measures it hopes will rescue the ailing economy and secure $11 billion in aid pledged by international donors last year. It is expected to announce a series of tax hikes in the coming months as part of next year's budget. Thursday's far-reaching protests prompted calls by senior officials for the government to resign, with influential Druze politician Walid Jumblatt saying he had urged the prime minister to step down. Interior Minister Raya al-Hassan said the prime minister will deliver a speech on Friday. "If this government falls, the government that will come after will not have better options," she said in a statement carried by NNA. The education ministry said schools and universities would be closed on Friday. Earlier on Thursday, Information Minister Jamal Jarrah had announced a 20-cent daily fee for messaging app users who made calls on platforms such as WhatsApp and Viber, sparking public outrage. He told reporters after a cabinet session the move would bring $200 million annually into government coffers. Lebanese digital rights group SMEX said the country's main mobile operators were already planning to introduce new technology that will allow them to detect whether users are trying to make internet calls using their networks. "Lebanon already has some of the highest mobile prices in the region," SMEX said on Twitter. The latest policy "will force users to pay for internet services twice", it added. Growth in Lebanon has plummeted in the wake of repeated political deadlocks in recent years, compounded by the impact of eight years of war in neighbouring Syria. "Most high-frequency indicators point towards a continuation of weak growth in 2019," the International Monetary Fund said Thursday. Lebanon's public debt stands at around $86 billion, higher than 150 per cent of gross domestic product, according to the finance ministry. Eighty per cent of that figure is owed to Lebanon's central bank and local banks. Last month, banks and money exchange houses rationed dollar sales, sparking fears of a currency devaluation.

Lebanese government faces calls to resign as austerity protests spread

China's economy expanded at its slowest rate in nearly three decades in the third quarter, hit by cooling domestic demand and a protracted US trade war, official data showed Friday.

The Chinese economy grew 6.0 per cent in July-September, compared with 6.2 per cent in the second quarter, according to the National Bureau of Statistics (NBS).

The reading -- in line with an AFP survey of 13 analysts -- is the worst quarterly figure since 1992 but within the government's target range of 6.0-6.5 per cent for the whole year.

The economy grew at 6.6 per cent in 2018.

"The national economy maintained overall stability in the first three quarters," said NBS spokesman Mao Shengyong.

"However, we must be aware that given the complicated and severe economic conditions both at home and abroad, the slowing global economic growth, and increasing external instabilities and uncertainties, the economy is under mounting downward pressure."

Services and high-tech manufacturing were the key areas of growth, while employment was "generally stable", he added.

Propping up economy

Beijing has stepped up support for the economy with major tax and rate cuts and has scrapped foreign investment restrictions in its stock market.

In its latest measure to shore up growth, the central bank said Wednesday it was pumping 200 billion yuan ($28 billion) into the financial system through its medium-term lending facility to banks, which is designed to maintain liquidity in the market.

But the efforts have not been enough to offset the blow from softening demand at home.

The trade conflict and weak domestic demand prompted the International Monetary Fund to lower its 2019 growth forecast for China from 6.2 per cent to 6.1 per cent on Tuesday.

The long-running trade war with the US has also chipped away at the Chinese economy.

This week, China reported weaker-than-expected import and export figures for September after Washington imposed new tariffs that month, triggering a tit-for-tat response from Beijing.

There were mixed signals for the economy in September.

Industrial output rose 5.8 per cent, from 4.4 per cent in August, led by a surge in demand for solar panels and electric vehicles, according to the NBS.

But fixed-asset investment slid to 5.4 per cent on-year in January-September, from 5.5 per cent in January-August, as the government warned against risky borrowing to build roads and bridges that could artificially pump up GDP in the short run.

China's army of consumers were slowly starting to open their wallets again, with retail sales edging up 7.8 per cent on-year in September, compared with 7.5 per cent in August.

"Despite a stronger September, pressure on the economic activity should intensify in the coming months," said Julian Evans-Pritchard of Capital Economics in a note.

He said he expects infrastructure spending to decline as China tries to rein in toxic debt and says the recent boom in property development "looks set to unwind".

"We expect monetary policy to be loosened before long in response, but it will take time for this to put a floor beneath economic growth," he added.

Let's make a deal

A "phase one" deal announced by US President Donald Trump last Friday after he met China's top negotiator Liu He in Washington offered a temporary reprieve from further tariff hikes.

But it did not roll back any of the stinging tariffs already imposed on hundreds of billions of dollars in trade between the economic powers, nor did it address another round of import taxes planned for December.

"A limited agreement will not resolve the underlying areas of disagreement between the two sides as long-term divergence in US and China national interest remains across trade, technology, investment and geopolitics," said Michael Taylor, a managing director for Moody's Investors Service.

"We expect further rounds of negotiation to remain challenging, with further potential for financial markets volatility."

China's commerce ministry spokesman Gao Feng said Thursday that its negotiators have "accelerated efforts" to hammer out the details of this mini-deal, and the two sides were aiming for an "early agreement".

Trump had said Wednesday that he hopes to sign the deal with his Chinese counterpart President Xi Jinping at the APEC summit in Chile next month.

But Gao declined to offer details on whether the text of the partial deal, or a full agreement, would be ready before the mid-November deadline.

China's economy expanded at its slowest rate in nearly three decades in the third quarter, hit by cooling domestic demand and a protracted US trade war, official data showed Friday.

China's economy expanded at its slowest rate in nearly three decades in the third quarter, hit by cooling domestic demand and a protracted US trade war, official data showed Friday. The Chinese economy grew 6.0 per cent in July-September, compared with 6.2 per cent in the second quarter, according to the National Bureau of Statistics (NBS). The reading -- in line with an AFP survey of 13 analysts -- is the worst quarterly figure since 1992 but within the government's target range of 6.0-6.5 per cent for the whole year. The economy grew at 6.6 per cent in 2018. "The national economy maintained overall stability in the first three quarters," said NBS spokesman Mao Shengyong. "However, we must be aware that given the complicated and severe economic conditions both at home and abroad, the slowing global economic growth, and increasing external instabilities and uncertainties, the economy is under mounting downward pressure." Services and high-tech manufacturing were the key areas of growth, while employment was "generally stable", he added. Propping up economy Beijing has stepped up support for the economy with major tax and rate cuts and has scrapped foreign investment restrictions in its stock market. In its latest measure to shore up growth, the central bank said Wednesday it was pumping 200 billion yuan ($28 billion) into the financial system through its medium-term lending facility to banks, which is designed to maintain liquidity in the market. But the efforts have not been enough to offset the blow from softening demand at home. The trade conflict and weak domestic demand prompted the International Monetary Fund to lower its 2019 growth forecast for China from 6.2 per cent to 6.1 per cent on Tuesday. The long-running trade war with the US has also chipped away at the Chinese economy. This week, China reported weaker-than-expected import and export figures for September after Washington imposed new tariffs that month, triggering a tit-for-tat response from Beijing. There were mixed signals for the economy in September. Industrial output rose 5.8 per cent, from 4.4 per cent in August, led by a surge in demand for solar panels and electric vehicles, according to the NBS. But fixed-asset investment slid to 5.4 per cent on-year in January-September, from 5.5 per cent in January-August, as the government warned against risky borrowing to build roads and bridges that could artificially pump up GDP in the short run. China's army of consumers were slowly starting to open their wallets again, with retail sales edging up 7.8 per cent on-year in September, compared with 7.5 per cent in August. "Despite a stronger September, pressure on the economic activity should intensify in the coming months," said Julian Evans-Pritchard of Capital Economics in a note. He said he expects infrastructure spending to decline as China tries to rein in toxic debt and says the recent boom in property development "looks set to unwind". "We expect monetary policy to be loosened before long in response, but it will take time for this to put a floor beneath economic growth," he added. Let's make a deal A "phase one" deal announced by US President Donald Trump last Friday after he met China's top negotiator Liu He in Washington offered a temporary reprieve from further tariff hikes. But it did not roll back any of the stinging tariffs already imposed on hundreds of billions of dollars in trade between the economic powers, nor did it address another round of import taxes planned for December. "A limited agreement will not resolve the underlying areas of disagreement between the two sides as long-term divergence in US and China national interest remains across trade, technology, investment and geopolitics," said Michael Taylor, a managing director for Moody's Investors Service. "We expect further rounds of negotiation to remain challenging, with further potential for financial markets volatility." China's commerce ministry spokesman Gao Feng said Thursday that its negotiators have "accelerated efforts" to hammer out the details of this mini-deal, and the two sides were aiming for an "early agreement". Trump had said Wednesday that he hopes to sign the deal with his Chinese counterpart President Xi Jinping at the APEC summit in Chile next month. But Gao declined to offer details on whether the text of the partial deal, or a full agreement, would be ready before the mid-November deadline.

China's Q3 GDP growth slumps to 6%, slowest in two decades

The International Monetary Fund (IMF) trimmed its 2019 growth forecast for China on Tuesday as the US trade war and weak demand at home take a toll on the world's second-largest economy.

The knock-on effects of the tariffs row and China's slowing economy also prompted the International Monetary Fund to lower the economic outlook of other advanced Asian economies.

Japan is bucking the trend of cooling growth but the region's other economic giant, India, is slowing.

China's economy is now expected to grow 6.1 per cent this year, according to the IMF's World Economic Outlook report, instead of the 6.2 per cent previously forecast.

The Asian powerhouse this week reported weaker-than-expected import and export figures for September after Washington imposed new tariffs that month, triggering a tit-for-tat response from Beijing. 
The two sides reported progress in negotiations to resolve the conflict last week but punitive tariffs on hundreds of billions of dollars remain in effect.

China's "growth downgrade reflects not only escalating tariffs but also slowing domestic demand following needed measures to rein in debt", the IMF said.

Figures for industrial production, retail sales and infrastructure investments for August were all down, as the government attempted to control toxic debt.

Weak demand follows Beijing's warnings to businesses against debt-fuelled expansion and attempts to stop local governments from borrowing to fund risky infrastructure projects.

Growth downgraded

Soft business confidence and growing tensions between the United States and China on trade and technology was also a major drag on the global economy, the IMF report said.

The Washington-based global crisis lender downgraded its 2019 global growth forecast to 3.0 per cent -- its lowest level in the past decade.

The IMF once again called for a quick resolution to the trade war between the world's economic superpowers, warning that a protracted dispute could shave 0.8 per cent off global growth next year.

It warned that some of the "biggest downward revisions" for growth this year are for Hong Kong, South Korea, and Singapore, "a common factor being their exposure to slowing growth in China and spillovers from US-China trade tensions."

Hong Kong's economy has also been battered by four months of pro-democracy protests, which have led to a plunge in tourism and retail sales.

The IMF revised its 2019 GDP growth forecast for the Asian financial hub to 0.3 per cent, from 3.0 per cent in 2018.&nbsp;

Growth in other major Asian economies -- including India -- was also slowing.

"In India, growth softened in 2019 as corporate and environmental regulatory uncertainty, together with concerns about the health of the nonbank financial sector, weighed on demand," the report said.

It predicted Indian growth will slow to 6.1 per cent this year, from 6.8 per cent in the previous year.

But Japan is doing better, with economists tipping the economy to expand 0.9 per cent in 2019, a tad up from the 0.8 per cent recorded last year, as government efforts to fight deflation and increase women's participation in the workforce start showing results.

The International Monetary Fund (IMF) trimmed its 2019 growth forecast for China on Tuesday as the US trade war and weak demand at home take a toll on the world's second-largest economy.

The International Monetary Fund (IMF) trimmed its 2019 growth forecast for China on Tuesday as the US trade war and weak demand at home take a toll on the world's second-largest economy. The knock-on effects of the tariffs row and China's slowing economy also prompted the International Monetary Fund to lower the economic outlook of other advanced Asian economies. Japan is bucking the trend of cooling growth but the region's other economic giant, India, is slowing. China's economy is now expected to grow 6.1 per cent this year, according to the IMF's World Economic Outlook report, instead of the 6.2 per cent previously forecast. The Asian powerhouse this week reported weaker-than-expected import and export figures for September after Washington imposed new tariffs that month, triggering a tit-for-tat response from Beijing. The two sides reported progress in negotiations to resolve the conflict last week but punitive tariffs on hundreds of billions of dollars remain in effect. China's "growth downgrade reflects not only escalating tariffs but also slowing domestic demand following needed measures to rein in debt", the IMF said. Figures for industrial production, retail sales and infrastructure investments for August were all down, as the government attempted to control toxic debt. Weak demand follows Beijing's warnings to businesses against debt-fuelled expansion and attempts to stop local governments from borrowing to fund risky infrastructure projects. Growth downgraded Soft business confidence and growing tensions between the United States and China on trade and technology was also a major drag on the global economy, the IMF report said. The Washington-based global crisis lender downgraded its 2019 global growth forecast to 3.0 per cent -- its lowest level in the past decade. The IMF once again called for a quick resolution to the trade war between the world's economic superpowers, warning that a protracted dispute could shave 0.8 per cent off global growth next year. It warned that some of the "biggest downward revisions" for growth this year are for Hong Kong, South Korea, and Singapore, "a common factor being their exposure to slowing growth in China and spillovers from US-China trade tensions." Hong Kong's economy has also been battered by four months of pro-democracy protests, which have led to a plunge in tourism and retail sales. The IMF revised its 2019 GDP growth forecast for the Asian financial hub to 0.3 per cent, from 3.0 per cent in 2018. Growth in other major Asian economies -- including India -- was also slowing. "In India, growth softened in 2019 as corporate and environmental regulatory uncertainty, together with concerns about the health of the nonbank financial sector, weighed on demand," the report said. It predicted Indian growth will slow to 6.1 per cent this year, from 6.8 per cent in the previous year. But Japan is doing better, with economists tipping the economy to expand 0.9 per cent in 2019, a tad up from the 0.8 per cent recorded last year, as government efforts to fight deflation and increase women's participation in the workforce start showing results.

International Monetary Fund trims 2019 China growth forecast as US tariffs bite

The global economy is experiencing a “synchronized slowdown,” the new head of the International Monetary Fund said on Tuesday.

New IMF chief Kristalina Georgieva makes her 1st speech

International Monetary Fund's chief <a href="https://www.wionews.com/world/divided-european-union-taps-bulgarias-kristalina-georgieva-as-international-monetary-fund-candidate-240499">Kristalina Georgieva </a>on Tuesday painted a grim picture of the world economy as she warned about 'synchronised slowdown'. She also said that&nbsp;nearly 90 per cent of the world will witness slower growth in 2019.

"Two years ago, the global economy was in a synchronised upswing. Measured by GDP, nearly 75 per cent of the world was accelerating. The global economy is now in a synchronised slowdown. In 2019, we expect slower growth in nearly 90 per cent of the world," said Georgieva.

The speech comes ahead of next week's annual meeting of the IMF and World Bank during which both the organisation are set to present the global economic outlook.

Georgieva also&nbsp;said that the effect&nbsp;of the slowdown is more pronounced&nbsp;in some of the largest emerging market economies like India.

"In the United States and Germany, unemployment is at historic lows. Yet across advanced economies, including in the US, Japan, an&nbsp;especially the euro area, there is a softening of economic activity. In some of the <a href="https://www.wionews.com/opinions/can-india-realistically-become-us-5-trillion-economy-236846">largest emerging market economies, such as India</a> and Brazil, the slowdown is even more pronounced this year," Georgieva also said.

The IMF had cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand.

Watch: IMF's Lagarde warns of 'growing concerns' over trade tensions

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The IMF's research also takes into account the US-China trade conflict, which could have long-term repercussions.

&nbsp;"We have spoken in the past about the dangers of trade disputes. now, we see that they are actually taking a toll. Global trade growth has come to a near standstill. In part because of the trade tensions, worldwide manufacturing activity and investment have weakened substantially. There is a serious risk that services and consumption could soon be affected, " Georgieva said.

"Even if growth picks-up in 2020, the current rifts could lead to changes that last a generation - broken supply chains, siloed trade sectors, a 'digital berlin wall' that forces countries to choose between technology systems," she added.

She highlighted that trade conflicts could lead to a loss of a whopping seven-hundred billion dollars from the global GDP output by 2020.

Speaking about the monetary policy, Georgieva said that central banks need to keep their interests low, especially due to low inflation and weak growth.

However, she also said that there was limited scope for further cuts because the borrowing were already nearly zero or negative.

Kristalina Georgieva took over as IMF's managing director on October 1 after Christine Lagarde resigned.

Georgieva is the former chief executive officer of World Bank.

International Monetary Fund's chief Kristalina Georgieva on Tuesday painted a grim picture of the world economy as she warned about 'synchronised slowdown'. She also said that nearly 90 per cent of the world will witness slower growth in 2019.

International Monetary Fund's chief Kristalina Georgieva on Tuesday painted a grim picture of the world economy as she warned about 'synchronised slowdown'. She also said that nearly 90 per cent of the world will witness slower growth in 2019. "Two years ago, the global economy was in a synchronised upswing. Measured by GDP, nearly 75 per cent of the world was accelerating. The global economy is now in a synchronised slowdown. In 2019, we expect slower growth in nearly 90 per cent of the world," said Georgieva. The speech comes ahead of next week's annual meeting of the IMF and World Bank during which both the organisation are set to present the global economic outlook. Georgieva also said that the effect of the slowdown is more pronounced in some of the largest emerging market economies like India. "In the United States and Germany, unemployment is at historic lows. Yet across advanced economies, including in the US, Japan, an especially the euro area, there is a softening of economic activity. In some of the largest emerging market economies, such as India and Brazil, the slowdown is even more pronounced this year," Georgieva also said. The IMF had cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand. Watch: IMF's Lagarde warns of 'growing concerns' over trade tensions × The IMF's research also takes into account the US-China trade conflict, which could have long-term repercussions. "We have spoken in the past about the dangers of trade disputes. now, we see that they are actually taking a toll. Global trade growth has come to a near standstill. In part because of the trade tensions, worldwide manufacturing activity and investment have weakened substantially. There is a serious risk that services and consumption could soon be affected, " Georgieva said. "Even if growth picks-up in 2020, the current rifts could lead to changes that last a generation - broken supply chains, siloed trade sectors, a 'digital berlin wall' that forces countries to choose between technology systems," she added. She highlighted that trade conflicts could lead to a loss of a whopping seven-hundred billion dollars from the global GDP output by 2020. Speaking about the monetary policy, Georgieva said that central banks need to keep their interests low, especially due to low inflation and weak growth. However, she also said that there was limited scope for further cuts because the borrowing were already nearly zero or negative. Kristalina Georgieva took over as IMF's managing director on October 1 after Christine Lagarde resigned. Georgieva is the former chief executive officer of World Bank.

World suffering 'synchronised slowdown', says new IMF chief; effect 'more pronounced' in India

The former head of the International Monetary Fund, Christine Lagarde, warned Thursday that global growth is "fragile" and "under threat" and policymakers should work to reduce manmade vulnerabilities.

Policymakers should work together to "try to reduce the fragility and ... resolve the uncertainty," facing the global economy, she told AFP in an interview.

Lagarde, who officially stepped down as IMF managing director last week, decried certain self-inflicted wounds, saying that issues like Brexit and trade frictions "are manmade and can be man-fixed."

But Lagarde, who was the first woman to lead the crisis-lender and is set to become the first woman to take over the leadership of the European Central Bank later this year, said, "a bit of woman wouldn't hurt."

Her comments came on the day the OECD said trade tensions are eroding world growth, prompting it to cut its forecast for this year to the slowest rate since the start of the global financial crisis in 2008, just 2.9 per cent down from the 3.2 per cent expansion previously forecast.

President Donald Trump's trade war with Beijing has undermined business investment and exports at a time when China's economy already is shifting to slower growth.

"What we have at the moment is a rather mediocre growth" which is "fragile and it is under threat," Lagarde said.

She said central banks have done much of the heavy lifting, preventing the financial crisis from becoming a depression, but officials handling government policies and purse strings now must step up.

"I think central bankers have done an awful lot and were for many years regarded as the only game in town," she said.&nbsp;

In her new post leading the ECB, she said she would focus on job creation and stability, but stability alone may not be enough in the lives of real people.

If confirmed, she will step into her new post in an environment where Trump has maintained a relentless campaign against the US Federal Reserve for not cutting interest rates aggressively to stimulate growth.

Trump has also accused outgoing ECB President Mario Draghi of deliberately seeking to weaken the euro to gain unfair trade advantages, something Draghi has refuted.&nbsp;

Others in Europe have criticized Draghi for cutting rates further into negative territory to juice a sluggish EU economy.

But Lagarde said that experience shows that, in cases where politicians meddle with central bank independence, it "doesn't pan out very well."

But she also said central bankers should strive to be "predictable."

"There is enough uncertainty around the world, not to add the uncertainty of what a central banker is going to do."

Central bankers "should deliver on their mandate and," she said, "they should stick to facts and data so that they could be predictable."

The former head of the International Monetary Fund, Christine Lagarde, warned Thursday that global growth is "fragile" and "under threat" and policymakers should work to reduce manmade vulnerabilities.

The former head of the International Monetary Fund, Christine Lagarde, warned Thursday that global growth is "fragile" and "under threat" and policymakers should work to reduce manmade vulnerabilities. Policymakers should work together to "try to reduce the fragility and ... resolve the uncertainty," facing the global economy, she told AFP in an interview. Lagarde, who officially stepped down as IMF managing director last week, decried certain self-inflicted wounds, saying that issues like Brexit and trade frictions "are manmade and can be man-fixed." But Lagarde, who was the first woman to lead the crisis-lender and is set to become the first woman to take over the leadership of the European Central Bank later this year, said, "a bit of woman wouldn't hurt." Her comments came on the day the OECD said trade tensions are eroding world growth, prompting it to cut its forecast for this year to the slowest rate since the start of the global financial crisis in 2008, just 2.9 per cent down from the 3.2 per cent expansion previously forecast. President Donald Trump's trade war with Beijing has undermined business investment and exports at a time when China's economy already is shifting to slower growth. "What we have at the moment is a rather mediocre growth" which is "fragile and it is under threat," Lagarde said. She said central banks have done much of the heavy lifting, preventing the financial crisis from becoming a depression, but officials handling government policies and purse strings now must step up. "I think central bankers have done an awful lot and were for many years regarded as the only game in town," she said. In her new post leading the ECB, she said she would focus on job creation and stability, but stability alone may not be enough in the lives of real people. If confirmed, she will step into her new post in an environment where Trump has maintained a relentless campaign against the US Federal Reserve for not cutting interest rates aggressively to stimulate growth. Trump has also accused outgoing ECB President Mario Draghi of deliberately seeking to weaken the euro to gain unfair trade advantages, something Draghi has refuted. Others in Europe have criticized Draghi for cutting rates further into negative territory to juice a sluggish EU economy. But Lagarde said that experience shows that, in cases where politicians meddle with central bank independence, it "doesn't pan out very well." But she also said central bankers should strive to be "predictable." "There is enough uncertainty around the world, not to add the uncertainty of what a central banker is going to do." Central bankers "should deliver on their mandate and," she said, "they should stick to facts and data so that they could be predictable."

Global growth 'fragile,' 'under threat': Former IMF head Christine Lagarde

Pakistan`s trade deficit shrank by nearly 38 per cent in the first two months of the current fiscal year, driven largely by a decline in imports of non-essential luxury items.

The constant decline in the trade deficit showed that imports have also plummeted despite a meager growth in exports.

Provisional trade figures available with Dawn showed that the trade deficit dipped to $3.973 billion in July-August from $6.37 billion over the corresponding months last year, reflecting a decline of 37.62 per cent.

The government has set a target to bring down the annual trade gap to $27.476 billion by June 2020. During the last fiscal year, the country`s trade deficit narrowed to $31.82 billion, registering a decline of 15.33 per cent.

The decline came on the back of the government`s interventions to arrest the rising import bill even though export proceeds posted a mixed trend during the same period. 
Imports have remained well above the $3 billion dollar mark since October 2016 and have risen consistently over the period peaking at $5.8 billion in May 2018.

The incumbent government has taken several measures to curtail the rising import bill since coming to power in August 2018.

Meanwhile, the country`s merchandise exports grew by 8 per cent to $3.686 billion in July and August, from $3.41 billion during the same period last year.

The numbers are massively discouraging, as exports, which should have grown over the last few months owing to multiple currency depreciation, have failed to pick up.

The growth in export proceeds during July was encouraging as it grew by 15.65 per cent on a year-on-year basis.

&nbsp;However, exports during August grew by a scanty 1.12 per cent to $1.792 billion as against $1.772 billion over the corresponding month last year. Cumulative exports during the ongoing fiscal year are likely to reach $26.187 billion, up from $24.656 billion in the financial year 2019.

The government has already reduced the cost of raw materials and semi-finished products used in exportable products by exempting them from all customs duties. In a bid to secure its plunging economy, Pakistan has been desperately trying to garner more investments and bailout packages from various entities.

The huge debt pile-up, however, would gradually force a slowdown in new projects that may push the country into a deeper economic crisis.

The International Monetary Fund has decided to send its team this month for suggesting ways and means to curtail the yawning budget deficit being faced by cash-strapped Pakistan.

Prime Minister <a href="https://www.wionews.com/south-asia/after-decades-of-afghan-conflict-imran-khan-regrets-paks-participation-in-americas-war-on-terror-249330">Imran Khan</a>, who was elected on an anti-corruption plank and a pledge to end austerity measures, had vowed to improve the depleting economic situation of the cash-strapped country.

In fact, the opposite has happened. In reality, prices of gas and oil products and electricity in Pakistan have risen considerably, burning a hole in the common man`s pocket.

Pakistan`s trade deficit shrank by nearly 38 per cent in the first two months of the current fiscal year, driven largely by a decline in imports of non-essential luxury items.

Pakistan`s trade deficit shrank by nearly 38 per cent in the first two months of the current fiscal year, driven largely by a decline in imports of non-essential luxury items. The constant decline in the trade deficit showed that imports have also plummeted despite a meager growth in exports. Provisional trade figures available with Dawn showed that the trade deficit dipped to $3.973 billion in July-August from $6.37 billion over the corresponding months last year, reflecting a decline of 37.62 per cent. The government has set a target to bring down the annual trade gap to $27.476 billion by June 2020. During the last fiscal year, the country`s trade deficit narrowed to $31.82 billion, registering a decline of 15.33 per cent. The decline came on the back of the government`s interventions to arrest the rising import bill even though export proceeds posted a mixed trend during the same period. Imports have remained well above the $3 billion dollar mark since October 2016 and have risen consistently over the period peaking at $5.8 billion in May 2018. The incumbent government has taken several measures to curtail the rising import bill since coming to power in August 2018. Meanwhile, the country`s merchandise exports grew by 8 per cent to $3.686 billion in July and August, from $3.41 billion during the same period last year. The numbers are massively discouraging, as exports, which should have grown over the last few months owing to multiple currency depreciation, have failed to pick up. The growth in export proceeds during July was encouraging as it grew by 15.65 per cent on a year-on-year basis. However, exports during August grew by a scanty 1.12 per cent to $1.792 billion as against $1.772 billion over the corresponding month last year. Cumulative exports during the ongoing fiscal year are likely to reach $26.187 billion, up from $24.656 billion in the financial year 2019. The government has already reduced the cost of raw materials and semi-finished products used in exportable products by exempting them from all customs duties. In a bid to secure its plunging economy, Pakistan has been desperately trying to garner more investments and bailout packages from various entities. The huge debt pile-up, however, would gradually force a slowdown in new projects that may push the country into a deeper economic crisis. The International Monetary Fund has decided to send its team this month for suggesting ways and means to curtail the yawning budget deficit being faced by cash-strapped Pakistan. Prime Minister Imran Khan, who was elected on an anti-corruption plank and a pledge to end austerity measures, had vowed to improve the depleting economic situation of the cash-strapped country. In fact, the opposite has happened. In reality, prices of gas and oil products and electricity in Pakistan have risen considerably, burning a hole in the common man`s pocket.

Pakistan's trade deficit falls by 38% in July-August

International Monetary Fund (IMF) on Thursday said that India's economic growth is "much weaker" than expected due to corporate and environmental regulatory uncertainty and "lingering weakness" in some non-Bank financial companies.

"Again, we will have a fresh set of numbers coming up but the recent economic growth in India is much weaker than expected, mainly due to corporate and environmental regulatory uncertainty and lingering weakness in some non-Bank financial companies and risks to the outlook are tilted to the downside, as we like to say," IMF spokesman Gerry Rice told reporters at a news conference.

The economic growth slowed to a seven-year low to 5 per cent in April to June quarter from 8 per cent a year ago, as per the government data.

The International Monetary Fund (IMF) has cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand.

The growth is expected to rise to 7.2 per cent points in FY21, down by the projected growth rate of 7.5 in the earlier report.

The slowdown was largely due to a sharp dip in the manufacturing sector and agriculture output, said the Ministry of Statistics and Programme Implementation in a statement.

The previous low was recorded at 4.9 per cent in April to June 2012-13. Consumer demand and private investment have weakened amid global trade frictions and dampening business sentiment.&nbsp;

International Monetary Fund (IMF) on Thursday said that India's economic growth is "much weaker" than expected due to corporate and environmental regulatory uncertainty and "lingering weakness" in some non-Bank financial companies.

International Monetary Fund (IMF) on Thursday said that India's economic growth is "much weaker" than expected due to corporate and environmental regulatory uncertainty and "lingering weakness" in some non-Bank financial companies. "Again, we will have a fresh set of numbers coming up but the recent economic growth in India is much weaker than expected, mainly due to corporate and environmental regulatory uncertainty and lingering weakness in some non-Bank financial companies and risks to the outlook are tilted to the downside, as we like to say," IMF spokesman Gerry Rice told reporters at a news conference. The economic growth slowed to a seven-year low to 5 per cent in April to June quarter from 8 per cent a year ago, as per the government data. The International Monetary Fund (IMF) has cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand. The growth is expected to rise to 7.2 per cent points in FY21, down by the projected growth rate of 7.5 in the earlier report. The slowdown was largely due to a sharp dip in the manufacturing sector and agriculture output, said the Ministry of Statistics and Programme Implementation in a statement. The previous low was recorded at 4.9 per cent in April to June 2012-13. Consumer demand and private investment have weakened amid global trade frictions and dampening business sentiment.

India's economic growth is 'much weaker' than expected: International Monetary Fund

Argentine bond prices fell on Thursday (August 29) and country risk soared to levels not seen since 2005 after the government announced plans to extend maturities on about $100 billion in debt, raising fear of a full-blown financial crisis.

Argentine bond prices fall, country risk soars on debt 'reprofiling' plan

Pakistan's budget deficit widened to 8.9% of gross domestic product in the financial year that ended in June, according to data on Tuesday that underlines the severe economic crisis facing the country.

The deficit size compared with a 7.1% estimate Prime Minister Imran Khan's government gave in June and with 6.6% during the year that ended in June 2018.

Pakistan, which in July sealed a $6 billion loan agreement with the International Monetary Fund, has been struggling to avert a balance of payments crisis and to prevent its debt from spiralling out of control.

The full year's deficit figure was released on the finance ministry website. Revenue during the year ended June 30 equalled 12.7% of GDP, a fall from the previous financial year's 15.2%.

The figures showed government expenditure at 21.6% of GDP in the latest financial year, compared with 21.8% a year earlier.

Pakistan has a notoriously narrow tax base, with fewer than 1% of its 208 million people filing income tax returns. There is a vast informal economy and several key sectors of the official economy are largely exempt from tax.

The budget for 2019-20, passed in June, approved measures designed to cut the deficit by bringing in o government coffers the equivalent of 1.7% of GDP. Pakistan has promised a multiyear effort to overhaul its tax and budget system to put its weak public finances on a firmer footing.

Pakistan's budget deficit widened to 8.9% of gross domestic product in the financial year that ended in June, according to data on Tuesday that underlines the severe economic crisis facing the country.

Pakistan's budget deficit widened to 8.9% of gross domestic product in the financial year that ended in June, according to data on Tuesday that underlines the severe economic crisis facing the country. The deficit size compared with a 7.1% estimate Prime Minister Imran Khan's government gave in June and with 6.6% during the year that ended in June 2018. Pakistan, which in July sealed a $6 billion loan agreement with the International Monetary Fund, has been struggling to avert a balance of payments crisis and to prevent its debt from spiralling out of control. The full year's deficit figure was released on the finance ministry website. Revenue during the year ended June 30 equalled 12.7% of GDP, a fall from the previous financial year's 15.2%. The figures showed government expenditure at 21.6% of GDP in the latest financial year, compared with 21.8% a year earlier. Pakistan has a notoriously narrow tax base, with fewer than 1% of its 208 million people filing income tax returns. There is a vast informal economy and several key sectors of the official economy are largely exempt from tax. The budget for 2019-20, passed in June, approved measures designed to cut the deficit by bringing in o government coffers the equivalent of 1.7% of GDP. Pakistan has promised a multiyear effort to overhaul its tax and budget system to put its weak public finances on a firmer footing.

Pakistan's budget deficit widens to 8.9% of GDP in 2018/19

<a href="https://www.wionews.com/business-economy/kuwait-to-tap-foreign-debt-markets-to-finance-deficit-1708">The Kuwait Investment Authority</a> (KIA) began increasing its exposure to bonds and cash two years ago to boost liquidity in its portfolio as the global economy showed signs of weakness, Kuwaiti newspaper Alqabas reported on Sunday, citing sources.

The report provided rare insight into the strategy of one of the world's biggest sovereign wealth funds, though it did not give a breakdown of KIA's investments in various asset classes.&nbsp;

KIA, in which the Sovereign Wealth Fund Institute estimates manage $592 billion of assets, does not publicly disclose its investments or detailed strategy.

The newspaper report said KIA made "calculated exits" from investments it felt were vulnerable to a downturn in global financial markets as the world economy began to show signs of faltering two years ago.

The International Monetary Fund (IMF) in July cut its forecast for global growth this year and next, warning that further tariffs in the US-China trade dispute or a disorderly British exit from the European Union could slow growth further, weaken investment and disrupt supply chains.

The IMF said that downside risks had intensified and it expected global economic growth of 3.2 per cent&nbsp;in 2019 and 3.5 per cent&nbsp;in 2020, both down by 0.1 percentage points from its April forecast and its fourth downgrade since October.

Despite recent volatility in equity markets, KIA has achieved a 10 per cent&nbsp;return on its investments in US stock markets since the beginning of this year, the report said.

KIA officials were not immediately available to comment.

Kuwaiti news agency KUNA reported in late 2017 that KIA had more than $300 billion of investments in the United States, diversified among stocks, bonds, real estate, and technology.

The fund's investments are spread across more than 120 economies globally.&nbsp; 
&nbsp;

The Kuwait Investment Authority (KIA) began increasing its exposure to bonds and cash two years ago to boost liquidity in its portfolio as the global economy showed signs of weakness, Kuwaiti newspaper Alqabas reported on Sunday, citing sources.

The Kuwait Investment Authority (KIA) began increasing its exposure to bonds and cash two years ago to boost liquidity in its portfolio as the global economy showed signs of weakness, Kuwaiti newspaper Alqabas reported on Sunday, citing sources. The report provided rare insight into the strategy of one of the world's biggest sovereign wealth funds, though it did not give a breakdown of KIA's investments in various asset classes. KIA, in which the Sovereign Wealth Fund Institute estimates manage $592 billion of assets, does not publicly disclose its investments or detailed strategy. The newspaper report said KIA made "calculated exits" from investments it felt were vulnerable to a downturn in global financial markets as the world economy began to show signs of faltering two years ago. The International Monetary Fund (IMF) in July cut its forecast for global growth this year and next, warning that further tariffs in the US-China trade dispute or a disorderly British exit from the European Union could slow growth further, weaken investment and disrupt supply chains. The IMF said that downside risks had intensified and it expected global economic growth of 3.2 per cent in 2019 and 3.5 per cent in 2020, both down by 0.1 percentage points from its April forecast and its fourth downgrade since October. Despite recent volatility in equity markets, KIA has achieved a 10 per cent return on its investments in US stock markets since the beginning of this year, the report said. KIA officials were not immediately available to comment. Kuwaiti news agency KUNA reported in late 2017 that KIA had more than $300 billion of investments in the United States, diversified among stocks, bonds, real estate, and technology. The fund's investments are spread across more than 120 economies globally.

Kuwait sovereign fund in portfolio shift on signs of global economic weakness: Report

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