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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Notices issued to Himachal conductor, driver for anti-Rahul Gandhi audio clip playing in govt bus
Shimla, Nov 30: After finding itself in soup over a CID enquiry on "missing samosas", the Himachal Pradesh government is again in a tight spot for issuing notices to a state roadways conductor and driver after an audio clip with defamatory remarks against Congress leader Rahul Gandhi was allegedly played in their bus.
A man in his complaint to the Chief Minister's Office said defamatory words were used against Congress leader Rahul Gandhi, Samajwadi Party (SP) chief Akhilesh Yadav and other leaders in an audio clip which was played in the Himachal Road Transport Corporation (HRTC) bus plying between Shimla and Sanjauli on November 5.
In a letter to the conductor and driver of the bus on November 25, the HRTC sought explanation from them. The letter went viral on the internet.
Talking to reporters on Friday, HRTC Managing Director Rohan Chand Thakur said a routine complaint was received from a customer after which a fact finding enquiry was initiated. The enquiry was closed as the allegations were found baseless.
However, the wording of the explanation sought could have been better and the officers have been verbally conveyed to improve in the coming times, he added.
The defamatory words were allegedly used in a debate being played in the audio clip.
Reacting sharply to the letter, BJP MLA from Dharamshala, Sudhir Sharma, said the government should appoint marshals to stop audios being played in buses.
"Such decisions of the government are damaging the reputation of the state government as well as the state," he added.
Earlier, the state CID department had ordered an internal enquiry on the samosas which were brought for Chief Minister Sukhvinder Singh Sukhu during a function and by mistake were served to the his security staff. A senior police official had termed the faux pas as an anti-CID and ant-Government act.
