International Monetary Fund upgrades outlook on Russian Federation as economy recovers

Pakistan       by Usman Arshad | Published

"Considerable progress was made in Russian Federation in recent years to shore up financial stability, including by closing weak banks, introducing reforms to the resolution framework, enacting measures to reduce dollarization, and increasing the risk weights of unsecured consumer and mortgage loans", the International Monetary Fund said.

Finance Minister Asad Umar left for Indonesia on Monday night to participate in the annual meetings of the International Monetary Fund and World Bank at Bali, scheduled to run until October 12, and formally request a bailout programme, reports Dawn news.

They show that a burst of strong growth, fueled partly by United States tax cuts and rising demand for imports, was starting to wane.

Under the 2015 Act, China only meets one of the three criteria for currency manipulation, namely that a country runs a significant bilateral trade surplus with the USA of at least US$20 billion.

While defending justified rate hikes, Lagarde added on Thursday that uncoordinated rate increases in advanced economies were contributing to destabilising capital outflows from emerging markets.

The IMF-World Bank meeting is an annual summit to discuss global financial and economic issues, including global economic outlook, poverty eradication, and aid effectiveness.

China's growth is still expected to be more than 6% next year, but the IMF's chief economist Maurice Obstfeld warned Beijing to concentrate on quality and sustainability of growth, not quantity of growth. Nor does it meet the third criterion of engaging in persistent, one-sided intervention in the foreign-exchange market, which the US Treasury defines as being when "net purchases of foreign currency are conducted repeatedly and total at least 2 per cent of an economy's GDP over a 12-month period". Rupee rates to the dollar were Rs98.81, Rs101.78, Rs104.84 and Rs104.85 on 30th of June of 2014, 2015, 2016 and 2017 respectively.

Reflecting such sentiments, growth in trade of goods and services across the world was revised down 0.6 point from the July forecast to 4.2 percent in 2018 and 0.5 point to 4.0 percent in 2019, according to the report.

The US growth forecast for 2019 is down from 2.7% to 2.5%.

"So to address this challenge there is a need for countries to create the necessary fiscus space notably by increasing the domestic resource mobilisation, in other words, broadening their tax base so that they can capture a lot more revenues that are needed to address this challenge".

India hopes to secure a waiver from USA sanctions on Iran before they take effect on November 4, as it had significantly cut Iranian oil imports before the deadline, officials said on Monday...

"Where we are now is we've gotten some bad news. It's so tight. I think the Fed has gone insane", the USA president said.

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