Effects of global slowdown more pronounced in India: IMF
Washington: The global economy is witnessing "synchronized slowdown", which will result in slower growth for 90 per cent of the world this year, and the effect is even "more pronounced" in some of the largest emerging market economies like India, new IMF chief Kristalina Georgieva has warned.
The Managing Director of International Monetary Fund (IMF) pointed out that the widespread deceleration means that growth this year will fall to its lowest rate since the beginning of the decade.
She said the World Economic Outlook to be released next week will show downward revisions for 2019 and 2020.
"In 2019, we expect slower growth in nearly 90 per cent of the world. The global economy is now in a synchronized slowdown," Georgieva said on Tuesday in her curtain raiser speech for the IMF and World Bank's annual meeting here next week.
The headline numbers reflect a complex situation, she said.
Despite this overall deceleration, close to 40 emerging market and developing economies are forecast to have real GDP growth rates above 5 per cent including 19 in sub-Saharan Africa, the IMF chief said.
In the United States and Germany, unemployment is at historic lows. Yet across advanced economies, including in the US, Japan and especially the euro area, there is a softening of economic activity, she said.
"In some of the largest emerging market economies, such as India and Brazil, the slowdown is even more pronounced this year. In China, growth is gradually coming down from the rapid pace it saw for many years," Georgieva said.
The precarious outlook presents challenges for countries already facing difficulties including some of the Fund's programme countries, she noted.
Georgieva called for using monetary policy wisely and enhancing financial stability.
"Now is the time for countries with room in their budgets to deploy or get ready to deploy fiscal firepower. In fact, low interest rates may give some policymakers additional money to spend," she said.
Referring to a new IMF research, which shows how structural reforms can raise productivity and generate enormous economic gains, she said these changes are the key to achieving higher growth over the medium and long-term.
"The right reforms in the right sequence could double the speed at which emerging markets and developing economies reach the living standards of the advanced economies," Georgieva said.
While the need for international cooperation is going up, the will to engage is going down, she rued.
"Trade is a case in point. And yet, we need to work together. From safely adapting to fintech, to fully implementing the financial regulatory reform agenda, to fighting money laundering and the financing of terrorism," Georgieva said.
Describing climate Change as a crisis where no one is immune and everyone has a responsibility to act, she said one of its priorities was to assist countries as they reduce carbon emissions and become more climate resilient.
At the current average carbon price of USD 2 per ton, most people and most companies have little financial incentive to make this transition. Limiting global warming to a safe level requires a significantly higher carbon price, she added.
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Misuse of power, money to control election mechanism seen during Maharashtra polls: Sharad Pawar
Pune (PTI): NCP (SP) chief Sharad Pawar on Saturday claimed the misuse of power and money to control the entire election mechanism, which was never before seen in any state assembly or national polls, was witnessed in Maharashtra.
Pawar made the statement when he visited senior activist Dr Baba Adhav, who is protesting against the alleged "misuse of EVMs" in the recent state polls in Maharashtra.
Adhav, who is in his 90s, began his three-day protest at Phule Wada, the residence of social reformer Jyotiba Phule, in the city on Thursday.
The opposition Maha Vikas Aghadi (MVA) allies, the Congress, Shiv Sena (UBT) and NCP (SP), have been alleging manipulation of EVMs in the recently held Maharashtra Assembly elections, which saw a landslide victory by the Mahayuti.
The Mahayuti, comprising the Shiv Sena, BJP and NCP, won 230 out of 288 assembly seats in the November 20 polls, while the MVA managed just 46 seats.Talking to reporters, Pawar said elections were conducted recently in the country, and there is a restlessness among the people about these.
Baba Adhav's agitation represents this restlessness, he said.
He said, "There is a murmur among the people that the recent polls in Maharashtra saw 'misuse of power' and 'floods of money', which was never seen in the past. Such things are heard of in local-level polls, but taking over the entire election mechanism with the help of money and misuse of power was not seen before. However, we witnessed it in Maharashtra, and people are restless now."
He added that people were recalling late socialist ideologue Jaiprakash Narayan and felt somebody should take a step forward.
"I heard Baba Adhav has taken a lead into this issue and is agitating at Phule Wada. His protest gives hope to the people, but it is not enough. A mass revolt is necessary, as the danger of the parliamentary democracy getting destroyed looms," Pawar said.
The former Union minister said those who have reins of the country in their hands are least bothered about this.
"Despite widespread discussion over it (alleged misuse of EVMs) in the country, whenever the opposition tries to raise the issue in the Parliament, they are not allowed to speak. Opposition leaders have been seeking an opportunity to speak on these issues for six days, but their demands have not been accepted even once. It shows they want to attack parliamentary democracy," he claimed.
He said Dr Adhav's protest is a fine example of someone revolting against the issue and expressed confidence that his protest will create a ripple effect.
