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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RCB to play five IPL 2026 home matches in Bengaluru, two in Raipur
Bengaluru (PTI): Defending champions Royal Challengers Bengaluru will play five of their home matches at the M Chinnaswamy Stadium here and the remaining two fixtures at Raipur's Shaheed Veer Narayan Singh International Stadium in the upcoming IPL, the franchise said on Tuesday.
The announcement ended doubts about whether the IPL 2025 winners would be able to play at their home ground, the M. Chinnaswamy Stadium, following the stampede that killed 11 fans after RCB's maiden title win.
Since that tragic indecent, the venue has not hosted any major domestic matches including the Ranji Trophy, Vijay Hazare Trophy or even the Maharaja Trophy KSCA T20.
"This significant development comes after months of hard work and close coordination across all concerned authorities with a common goal of bringing the games back to home ground for the fans," RCB said in a release.
"RCB extends its sincere gratitude to the Government of Karnataka, the Karnataka State Cricket Association and the Karnataka Police for their unwavering guidance, cooperation and support in facilitating the hosting of matches in Bengaluru."
"The collective efforts to ramp up infrastructure and safety measures in time for the IPL season have ensured that the defending champions will play the majority of their home games in their home ground," the franchise added.
The franchise said that the two "home matches" in Raipur will be as "per prior commitment."
RCB CEO Rajesh Menon said the fans deserve to watch their team compete at home.
"The M. Chinnaswamy Stadium is more than just our home ground it is where our identity as a team truly comes alive," he said.
"The energy our fans bring to Bengaluru has always been a driving force for our players, inspiring them through every phase of the game. Our fans have stood by us unconditionally, and they deserve the opportunity to watch their team compete at home."
"After detailed discussions and completing the necessary due process around permissions, we are pleased to confirm that RCB will play five matches in Bengaluru. We sincerely thank the Government of Karnataka, the KSCA, and the Karnataka Police for their support in making this possible," Menon added.
