International Monetary Fund retains economic growth projection for India at 7.3% for FY19

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For FY20, the Chinese economic growth rate was cut by 0.2 percentage points to 6.2 per cent.

"Notwithstanding the present demand momentum, we have downgraded our 2019 USA growth forecast owing to the recently enacted tariffs on a wide range of imports from China and China's retaliation". South Africa, only 0.8 percent this year.

However, some economists still believe that the country would be able to maintain the current growth rate.

The IMF said that monetary policy normalisation and a stronger dollar in the United States has put pressure on the exchange rates in emerging economies like Brazil, India and South Africa, among others. The US growth forecast was cut by 0.2 percentage points in 2019 tp 2.5pc.

"Notwithstanding the present demand momentum, we have downgraded our 2019 U.S. growth forecast owing to the recently enacted tariffs on a wide range of imports from China and China's retaliation".

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China's growth is still expected to be more than 6% next year, but the IMF's chief economist Maurice Obstfeld warned Beijing to concentrate on quality and sustainability of growth, not quantity of growth.

It said the Saudi economy, which contracted by 0.9 percent last year, is expected to grow by 2.2 percent in 2018 and 2.4 percent next year, raising previous projections by 0.5 percent.

The report said, in India, important reforms have been implemented in recent years, including the Goods and Services Tax, the inflation-targeting framework, the Insolvency and Bankruptcy Code, and steps to liberalise foreign investment and make it easier to do business.

"However, further reforms are needed to increase policy certainty, improve the efficiency of state-owned enterprises, enhance flexibility in the labor market, improve basic education, and align training with business needs", the International Monetary Fund said.

According to the World Economic Outlook, in India, reform priorities include reviving bank credit and enhancing the efficiency of credit provision by accelerating the cleanup of bank and corporate balance sheets and improving the governance of public sector banks.

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It added, "A high interest burden and risks from rising yields also require continued focus on debt reduction to establish policy credibility and build buffers".

It may take a few months before the agreement is reached and money starts pouring in from the International Monetary Fund, the report said.

Global trade is projected to expand by 4.2 percent this year, six tenths less than expected in July and almost a full point lower than the forecast in April.

The report said that aggregate growth in the emerging market and developing economy group stabilised in the first half of 2018.

It found that global GDP output under this scenario would fall by more than 0.8 percent in 2020 and remain roughly 0.4 percent lower in the long-term compared to levels without these effects, which "inflict significant costs to the global economy, especially through its impact on confidence and financial conditions".

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