Global growth has plateaued at 3.7 per cent; clouds on the horizon

IMF upgrades forecast for Russia's growth to 1.8% in 2019

The latest of these exchanges saw US President Donald Trump impose a 10 percent tariff on $200 billion (£153 billion) worth of Chinese goods in September, which would increase to 25 percent by the end of 2018. But he said that China's involvement can create issues for Pakistan as well.

The IMF pointed out that a full-blown trade war between the world's largest and second largest economies will cause a significant dent to the economic recovery from the Great Recession of 2018.

Argentine President Mauricio Macri took out a three-year standby loan from the International Monetary Fund in the amount of US$50 billion in June.

The slowdown has been caused predominantly by the world's two largest economies - the U.S. and China - engaging an increasingly damaging trade war.

It said the global economy will grow 3.7 percent this year, the same as in 2017 but down from the 3.9 percent it was forecasting for 2018 in July.

The IMF slashed China's growth rate to 6.6 per cent in 2018 and further down to 6.2 per cent in 2019, from 6.9 per cent in the previous year.

The 0.2 percentage point downgrade to the 2019 growth forecast is attributable to the negative effect of recent tariff actions, assumed to be partially offset by policy stimulus, it said. German growth was revised down to 1.9 percent in both 2018 and 2019 due to a slowdown in exports and industrial production.

Oil prices continue to fall amid United States sanctions on Iranian crude
UCO Bank and IDBI Bank have been identified to route the payment as the two have no exposure to the U.S. financial system. These claims aim to satisfy the U.S. and express support for Washington's sanctions against Iran, he added.

But the U.S. tax cuts and rising spending that have boosted growth, helping compensate for the impact of the growing trade conflict, could spark a sudden "inflation surprise", and in turn lead to faster-than-expected rise in United States interest rates, according to the fund.

The forecast is included in the World Economic Outlook IMF report presented today by the Chief Financial Officer of the Morris Ombstheld Fund at the Annual Session of the Organisation in Bali, Indonesia. China's expected 2019 growth is also marked down.

Downgrades to global growth also reflected predictions of a slower expansion in the eurozone as well as turbulence in a number of emerging market economies.

"An increase in trade barriers would disrupt global supply chains, which have become an integral part of production processes in the past decades, and slow the spread of new technologies, ultimately lowering global productivity and welfare".

"Trade policy reflects politics and politics remain unsettled in several countries, posing further risks", said Maurice Obstfeld.

While the International Monetary Fund said United Kingdom interest rate rises would need to rise over the next few years to keep a lid on inflation, it urged the Bank of England to remain "flexible" and ready to move in either direction depending on the outcome of Brexit negotiations. "This is not true in emerging and developing economies, where financial conditions have tightened markedly over the past six months", he said.

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