Why the International Monetary Fund revised India's growth projection and why it doesn't matter

Why the International Monetary Fund revised India's growth projection and why it doesn't matter

Why the International Monetary Fund revised India's growth projection and why it doesn't matter

Obstfeld said that although some factors have negatively impacted the global growth since April, they were not significant enough to reduce the projection.

The IMF announced the upgrade in its World Economic Outlook (WEO) Update, July 2018 titled, "Less Even Expansion, and Rising Trade Tensions". Nigeria's growth is set to increase from 0.8% in 2017 to 2.1% in 2018 and 2.3% in 2019 on the back of an improved outlook for oil prices.

Although India is still expected to be the fastest growing major economy in 2018 and 2019, and a key driver of global growth, the International Monetary Fund predicts slight deceleration in the economy.

The effect of the twin headwinds on the IMF's projection for 2019-20 was much sharper - 0.3 percentage points.

Despite the slight downgrade in projections, India continues to outperform China.

"The IMF had pointed out in April that good times in the global economy will not last and that "jarring" contradictions between growth momentum and a conflict over trade" will ultimately slowdown the global economy.

"That adds to oil and tighter global financial conditions in taking a little bit off growth for next year", he said. Any increase in the price of oil has an adverse effect on the fiscal and current deficit since oil is India's largest import commodity.

The IMF has scaled down economic growth in Argentina and Brazil, besides India, among emerging market economies.

Man starts 20+ mile walk to work, drives home in blessing
So far, he's batting 1,000'. "I want to show my job I am what I said I was in my interview-that I'm dedicated". After hearing his story, Mr Marklin handed Mr Carr the keys to his own 2014 Ford Escape .

However, the report said that without steps to "ensure the benefits are shared by all, disenchantment with existing economic arrangements could well fuel further support for growth-detracting inward-looking policies".

The IMF noted that because of strong employment and firming inflation, the US Federal Reserve was on track to continue raising interest rates over the next two years, tightening its monetary policy compared with other advanced economies and strengthening the US dollar.

The IMF warned that some large economies in Latin America, emerging Europe, and Asia will growth at rates below its April forecasts. Alongside the threat of greater trade disputes, Obstfeld said: "Financial markets seem broadly complacent in the face of these contingencies".

The RBI will now come up with its monetary policy in August amid a five-month-high consumer price index inflation rate at 5 per cent and more than a four-year high wholesale price index inflation rate at 5.77 per cent in June.

Mexico struck back swiftly after the United States announced that it would impose 25% and 10% duties on steel and aluminum, introducing its own tariffs on a range of US products including pork, apples, some steel products, a range of cheeses and bourbon.

"Our modeling suggests that if current trade policy threats are realized and business confidence falls as a result, global output could be about 0.5 per cent below current projections by 2020", the International Monetary Fund said.

It added the USA could be the "focus of global retaliation" and would be especially vulnerable if President Trump slapped China with $200 billion in fresh tariffs.

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