International Monetary Fund cuts India's FY20 GDP growth forecast to 6.1% from 7%

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The IMF forecast Egypt's current account deficit would widen to 2.8 percent of GDP this fiscal year from its 1.7 percent estimate in April.

Besides supporting growth, such actions can also help catalyse needed cooperative solutions to improve the global trading system, Gopinath said.

In an economic slowdown only half as severe as the last crisis, a stunning $19 trillion in debt held by companies in eight major economies could be at serious risk, the International Monetary Fund warned in its latest Global Financial Stability Report.

IMF's growth rate cut comes after the World Bank slashed India's projected growth rate to 6 per cent in 2019 from 6.9 per cent in 2018.

Shortly, stopping the trade war between the United States and China would be the only way to balance out the economic situation of the country.

Kristalina Georgieva, who will preside over her first IMF meetings after succeeding Christine Lagarde this month as the fund's managing director, said last week that the various trade disputes could produce a loss of around $700 billion in output by the end of next year or about 0.8 percent of world output. The latest Economic outlook revealed that India is going to have a 6.1% growth rate in this financial year.

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But Gopinath said a US-China truce would reduce that impact, essentially adding a tenth of a percent back to global GDP for 2020 for each round of tariffs reversed, including those Washington had planned for this week, as well as another batch due to hit China in December.

It said the September 14 attacks on Saudi oil facilities have stoked tension and uncertainty in the region, especially following tanker attacks in the strategic Strait of Hormuz through which 20 percent of oil trade passes.

Gopinath blamed the slowdown on rising alternate barriers, uncertainty surrounding alternate and geopolitics, and structural elements, equivalent to low productiveness development and an aging inhabitants in developed nations.

IMF is an organization of 189 countries working to foster global monetary cooperation, secure financial stability, facilitate worldwide trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

The country's gross domestic product (GDP) grew by an estimated 4.1% in 2018, down from 4.2% estimated in April, according to the report.

Globally, India stood in contrast to IMF's gloomy economic projection of a "synchronised slowdown".

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WEO projected China's financial progress to decelerate to five.eight per cent subsequent yr in distinction to India's 7 per cent.

The WEO recommended broad based structural reforms to strengthen confidence and address cyclical weakness.

The automobile industry is contracting owing also to idiosyncratic shocks, such as disruptions from new emission standards in the euro area and China that have had durable effects. The primary deficit means excluding the expenditure incurred on debt servicing so Pakistan is committed with the International Monetary Fund to convert primary deficit into surplus from next fiscal year and maintain it in surplus position over the medium term under the condition of the International Monetary Fund programme.

Australia has so far been a big victor of the global slowdown sparked by the USA and China's trade war, with China spending on infrastructure and buying raw materials from Australia.

"At 3% growth there is no room for policy mistakes and there is an urgent need for policymakers to support growth", stressed Gopinath.

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