Pressure on the lira saw inflation rates soar to almost 25 percent in September, marking the highest levels since President Erdogan came to power 15 years ago.
US-CHINA TALKS: US Secretary of State Mike Pompeo said that Washington had a "fundamental disagreement" and "great concerns" about Chinese actions, before a meeting with Chinese Foreign Minister Wang Yi and another senior official in Beijing on Monday.
Reflecting such sentiments, growth in trade of goods and services across the world was revised down 0.6 point from the July forecast to 4.2 percent in 2018 and 0.5 point to 4.0 percent in 2019, according to the report.
The IMF said it was now predicting 3.7 percent global growth in both 2018 and 2019, down from its July forecast of 3.9 percent growth for both years.
Before his departure for Bali, Indonesia, for attending the annual meeting of IMF/WB from Oct 8 to 14, Federal Minister for Finance Asad Umar announced the government's decision for approaching the IMF for getting the 22nd programme of the Fund. "Growth has proven to be less balanced than we had hoped", IMF Chief Economist Maurice Obstfeld told reporters Tuesday in Bail. -China tariff war's impact to be felt next year, the fund cut its 2019 US growth forecast to 2.5 percent from 2.7 percent, while it cut China's 2019 growth forecast to 6.2 percent from 6.4 percent.More news: ‘Tara’ Lead Actor Accused of Sexual Assault by Producer
The Federal Reserve, the USA central bank, has raised short-term US rates three times this year as the American economy gains strength more than nine years after the end of the Great Recession. However, some sources pointed out that Pakistan had to pay back around $6 billion to the International Monetary Fund which the country had obtained during the last PML-N government, so the size of the programme might go up to $10 to $12 billion.
The US growth forecast for 2019 is down from 2.7% to 2.5%.
Some energy-rich emerging market countries have fared better due to higher oil prices, with Saudi Arabia and Russian Federation seeing forecast upgrades.
But the already tricky transition has been complicated by US President Donald Trump's use of import tariffs to punish China for what he considers predatory trade practices.More news: Explosion, fire reported at Saint John oil refinery
Analysts said the devaluation and interest rate hike were a must to pull down aggregate demand to overcome the balance of payments challenge and cool down the overheated economy.
The International Monetary Fund (IMF) has cut the growth projections made for Nigeria saying the country's economy is doing poorly. Bond markets were closed, leading USA indexes to a mixed finish after a day of light trading.
It has recently taken a more accommodating stance to help buffer China's economy from the United States trade measures.
It also assumes that Trump imposes a 25% tariff on imported cars and auto parts imports.More news: Liveblog: Google’s Pixel 3 launch event at 11am ET Tuesday, October 9