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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Two Delhi men held for BMTC bus phone thefts in Bengaluru
Bengaluru: Whitefield police have arrested two men from Delhi for allegedly stealing mobile phones from passengers travelling in Bengaluru Metropolitan Transport Corporation (BMTC) buses and solved 14 theft cases, officials said on Tuesday.
The arrested accused have been identified as Jai Chand (25), who worked at a hotel in Delhi, and Tarun (34), an autorickshaw driver in Delhi.
Officials said on January 24, a Mahadevapura resident lodged a complaint that his iPhone 15 Plus was stolen while he was travelling on a BMTC bus towards Whitefield.
Based on the complaint, police registered a case and arrested two suspects within an hour near a lodge on Hosa Road. During the arrest, the police found a bag containing several stolen mobile phones.
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“During interrogation, the suspects confessed that they were stealing mobile phones from passengers travelling in BMTC buses. They had also committed thefts during a concert held under the Channarayapatna police station limits on January 23,” the police said.
Investigations revealed that the accused had travelled from Delhi for the concert and stolen mobile phones from the audience. A third suspect is at large and is likely hiding in the Shahdara area of Delhi.
One of the victims, a YouTuber, raised the theft issue in February in a post on X.
“Here is my (FIR No 0013/2026 is registered in Channarayapatana PS. Your GSC No. is PO1814260100013) request @DelhiPolice @BlrCityPolice to plz look into this & get my device back since it's my work phone & I am a youtuber, all my data is there! someone plz help. @dcpwhitefield,” Anirban Sarkar posted on X on February 6.
Police have recovered 14 mobile phones of various brands, collectively valued at about Rs 9 lakh, from the accused. The two were produced before the court and remanded in judicial custody.
In total, one case from Whitefield and 13 from Channarayapatna police stations were detected. Further investigation is underway.
