Inflation in PHL to ease — International Monetary Fund long-term outlook


The Finance Minister shared with the World Bank leader, the vision of the new government and its priorities.

In a report shared with Profit, Renaissance Capital says Pakistan's most recent devaluation takes the rupee to just 4 percent below its long-term average rate (1995-2018).

Lagarde said she remained optimistic that disputes between nations could be ironed out, citing the Trump administration's recent successful renegotiation of the NAFTA agreement between the US, Canada and Mexico. "Fix the system. Don't break it". But she added that the WTO does need to work on addressing issues like subsidies.

"That would certainly be a very strong recommendation that I would give".

The Swiss figures go against the current global economic growth trend, which the International Monetary Fund has reduced from its previous estimate of 3.9% to 3.7% for 2018 and 2019.

Compared to the medium-term risks, near-term risks have risen in the past six months but are "relatively limited" and subdued, relative to historical norms, with financial conditions still broadly accommodative and supportive of growth in the near-term, said the International Monetary Fund.

World Bank President Jim Yong Kim said the World Bank is working with developing countries to brace for a further deterioration.

The Bretton Woods institution said the potential for greater financial market volatility requires fortifying financial systems and avoiding a rollback of the post crisis regulatory reforms.

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"Trade is critical, because that is what has lifted so many people out of extreme poverty", said Kim. "I am a globalist". That is our only chance of ending extreme poverty.

Besides, the Africa Export Import Bank (Afreximbank) said it had committed more than $3.2 billion in Nigeria to support virtually all the financial institutions in terms of lines of credit for import and export activities as well to assist small and medium-sized enterprises (SMEs).

Kim said the bank had offered help to Indonesia for its recent quake and tsunami and other disasters. This year, the meeting is being hosted in Bali, Indonesia, since Friday.

She, however, said that spillovers could occur in various volatile ways. There was no evidence of severe damage in the area near the finance meetings. It cited US tariffs on solar panels, washing machines, steel and aluminum, in addition to retaliation by trade partners, as potentially depressing factors.

But the byproducts of the tourist boom in largely Hindu Bali have been significant inequality and environmental damage.

"To that, my answer is "probably not enough" because we clearly see growth has plateaued three years in a row - it is at 3.7 percent - and we also see that growth is unevenly allocated around the world". Beijing and Riyadh have provided Pakistan with financial assistance in the past. China was the fastest-growing economy in 2017.

Finance minister Asad Umar, who is attending the fund's annual meeting in Bali this week, announced late Monday that the government had chose to begin talks with the IMF for a "stabilization recovery program".

Meanwhile, global debt statistics reached a record high of $182 trillion this year, with the United States and China accounting for the lion's share while Europe and Emerging Market countries trail.