International Monetary Fund announces forecasts for economic growth in Azerbaijan

International Monetary Fund announces forecasts for economic growth in Azerbaijan

Maurice Obstfeld, the IMF's economic counsellor, said at a press conference in Bali, Indonesia, after the report was released, admitted the April forecast was "overoptimistic" and that growth was "less balanced than we hoped". "Thus, policymakers still have an excellent opportunity to build resilience and implement growth-enhancing reforms", Mr. Obstfeld said.

Over the longer term the impact to the USA economy will be almost one percentage point, while to China it will be half that.

The global organization also estimates that over the medium-term, growth in China is expected to slow to 5.6 percent, "as the economy continues to make the transition to a more sustainable growth path with continued financial de-risking and environmental controls", the report said.

"But, first we will try to get assistance from other countries as we have requested three countries to deposit money in Pakistan's State Bank that would help boost national reserves", he said, without offering details or taking any name on the matter.

Lagarde also said the International Monetary Fund has yet been able to receive anything formal from Islamabad, however she will still go meet up with the Pakistani delegations, along with other International Monetary Fund officials on Thursday afternoon. But it predicts that USA growth will slow to 2.5 per cent next year as the effect of recent tax cuts wears off and as President Donald Trump's trade war with China takes a toll.


ANALYST'S TAKE: The IMF report "should in no way surprise" as the fund's managing director Christine Lagarde warned that trade disputes were weighing on global growth last week, said Chris Weston of Pepperstone Group Limited.

"Pakistan is suffering from a number of imbalances: A very large fiscal imbalance". "Notwithstanding the present demand momentum, we have downgraded our 2019 USA growth forecast owing to the recently enacted tariffs on a wide range of imports from China and China's retaliation".

"We certainly hope we don't move in either direction of a trade war or a currency war". It said, the prediction is lower due to recent increase in oil prices and the tightening of global financial conditions. Rather than rising, growth has plateaued at 3.7 percent. On Monday, the currency was trading at 128 per United States dollar on the open market and 124.20 in the official interbank rate.

"But there is no denying that the susceptibility to large global shocks has risen", Obstfeld said.

International Monetary Fund chief Christine Lagarde said she would meet with Pakistani officials on Thursday, with expectations that Islamabad will request a bailout of its economy. "Any sharp reversal for emerging markets would pose a significant threat to advanced economies, as emerging market and developing economies' GDP now constitutes about 40 percent of world GDP at market exchange rates".

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