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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Dalit couple beaten, made to wear garlands of shoes in MP; 10 persons booked
Ashok Nagar (MP) (PTI): An elderly Dalit couple has been allegedly beaten up and made to wear garlands of shoes in Madhya Pradesh's Ashok Nagar district, police said on Sunday.
The couple's son had allegedly been involved in an eve-teasing incident, they said.
A case has been registered against 10 persons who were at large in connection with the incident of thrashing the couple which took place on Friday in Kilora village under Mungaoli police station limits, an official said.
The couple's son had been allegedly involved in eve-teasing the wife of one of the accused following which the Dalit family left the village, Mungaoli police station in-charge Gabbar Singh Gurjar said.
The couple came to the village recently, he said.
On Friday, the accused allegedly tied the 65-year-old man Dalit man and his wife aged 60 to a pole, beat them up and made them wear garlands of shoes, the official said.
Following a complaint by the victim woman, the police on Saturday registered a case against 10 persons under Indian Penal Code (IPC) sections 147 (rioting), 149 (unlawful assembly with common objective), 323 (voluntarily causing hurt), 294 (obscene act) and 506 (criminal intimidation) as well as provisions of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, he said.
All the accused were absconding and efforts were on to trace them, the police added.
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