International Monetary Fund cuts world economic growth forecasts as tariffs hit

IMF Raises Russia's GDP Growth Forecast to 1.8% in 2019

"Today, I met with Pakistan's Minister of Finance, Revenue and Economic Affairs, Asad Umar, Governor of the State Bank of Pakistan Tariq Bajwa, and members of their economic team", said a statement released by Ms Lagarde's office.

Lagarde told reporters the Fed's rate hikes were justified by fundamentals.

The annual summit for global finance brings together central bankers and finance ministers, development experts and civil society groups from across the globe. "Our probability that we would attach to further bad news has gone up", Obstfeld said.

Trump has repeatedly touted Wall Street record highs as proof of the success of his policies including a confrontational trade strategy, and frequently criticises the Fed for gradually raising interest rates, which could press the brakes on equity markets.

The global financial elite are on the Indonesian holiday island for a week of discussions clouded by the economic outlook.

The outflows under its estimated tail-risk scenario are much higher than during the European sovereign debt crisis in the fourth quarter of 2011, for instance, when U.S. interest rates were low and the dollar was weaker, but risk aversion was high.

On Wednesday, Lagarde said world leaders should fix global trading systems instead of tearing them down, in response to nationalist politicians pushing tariffs and protectionism.

The IMF chief acknowledged, though, that recent Fed rate increases had been a headache for many emerging economies as capital outflows continued and local currencies kept tumbling.

"A sudden deterioration of risk appetite, rising trade tensions, and political and policy uncertainty could also lead to tighter financial conditions", the report said on Friday.

"In whatever work we do, we need to have a complete understanding and absolute transparency about the nature, size, and terms of the debt that is bearing on a particular country", she said.

Dramatic Footage Shows Moment Inside Soyuz Capsule When Booster Rocket Failed
Russian and US space officials said that the crew is heading for an emergency landing in Kazakhstan at an unspecified time. One of the pictures showed Hague smiling and another had him sitting next to Russia's space agency chief Dmitry Rogozin.

"The fact that large central banks of advanced economies are not exactly all moving at the same pace is also probably accelerating that phenomenon".

"New vulnerabilities have emerged and the resilience of the global financial system has yet to be tested", it said in the twice-yearly Global Financial Stability Report.

Khan's administration had also approached China and Saudi Arabia, Islamabad's other historical ally, for help to prop up the economy but they appear to have balked at coming to Pakistan's rescue on their own.

The head of the World Trade Organization warned that a "full-blown commercial war" could shrink global trade by almost 18 percent and also knock worldwide GDP, hurting the United States, China, and others.

Prime Minister Imran Khan formally launched Naya Pakistan Housing Project, A low-priced housing scheme as part of his party's manifesto.

Compared to the medium-term risks, near-term risks have risen in the past six months but are "relatively limited" and subdued, relative to historical norms, with financial conditions still broadly accommodative and supportive of growth in the near-term, said the International Monetary Fund.

The United States and China have slapped tit-for-tat tariffs on hundreds of billions of dollars of each other's goods over the past few months, rattling financial markets as investors worry that the escalating trade conflict could knock global trade and investment.

Forbes and the International Monetary Find (IMF) have differed on Nigeria's economic growth in 2018 and projections for 2019.

This story has been published from a wire agency feed without modifications to the text.

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