International Monetary Fund reviews Nigeria's growth projection downwards

Swiss economy predicted to grow 3% by end of year

Swiss economy predicted to grow 3% by end of year

In its latest World Economic Outlook, released on Tuesday, the International Monetary Fund predicted global growth to expand by 3.7% in 2018, 0.2 percentage points lower than its forecast in July causing the FTSE 100 to fall to a six-month low, dropping 0.5% to 7,198 points.

IMF's projection is coming barely a week after the World Bank cut growth in Sub-Saharan Africa from 3.1% in 2018 to 2.7%.

In a report released ahead of the IMF's annual conference, this year held on the Indonesian island of Bali, the fund said that the UK's "pace of fiscal consolidation can be eased if risks materialize and growth slows sharply". The U.S. economy is expected to grow 2.5 percent in 2019.

Finance ministers and central bankers from numerous IMF's 189 member nations are meeting in Bali this week with talk of rising protectionism taking centre stage.

The IMF, created in 1945, is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate worldwide trade, promote high employment and sustainable economic growth, and reduce poverty around the world. "The negative revisions for emerging market and developing economies are more severe, at minus 0.2 and minus 0.4 percentage point respectively for this year and next year". Citing the impact of US taxes on Chinese imports, however, the International Monetary Fund shaved the outlook for China next year to 6.2 per cent, which would be the country's slowest growth since 1990.

In September 2018 Donald Trump imposed tariffs worth $200 billion on Chinese goods and threatened to sign off on a further $267 billion - an escalation in a tariff war that, at that point, had only seen both countries levy tit-for-tat duties on each other's imports.

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"Overall, compared with six months ago, projected 2018-2019 growth in advanced economies is 0.1 percentage point lower, including downgrades for the euro area, the United Kingdom, and Korea".

It said, the prediction is lower due to recent increase in oil prices and the tightening of global financial conditions.

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.

The Fed's rate hikes have already piled pressure on emerging market economies, increasing the risk of capital outflows as investors seek higher returns.

Both of those figures would mark the slowest rate of expansion for China since 1990, when growth shuddered in the aftermath of the violent suppression of massive Tiananmen Square pro-democracy demonstrations the previous year.

The UK economy, meanwhile, is expected to grow 1.4 percent this year and 1.5 percent in 2019 - falling behind nearly all of Europe, with the exception of heavily-indebted Italy.

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