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Nigeria's growth not enough to create jobs, says International Monetary Fund

11 October 2018

The IMF predicts the global economy will grow by 3.7 percent in 2018 and 2019 - a 0.2 percentage point downward revision from previous forecasts.

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.

The IMF, in its twice annual assessment of global financial stability, said conditions remain broadly conducive to economic growth, but are at risk of worsening should emerging markets deteriorate further or trade tensions escalate.

This acceleration, the world body said, reflected a rebound from transitory shocks (the currency exchange initiative and implementation of the national Goods and Services Tax), with strengthening investment and robust private consumption.

"While Nigeria will grow from 1.9 per cent in 2018 to 2.3 percent in 2019, South Africa and Angola are projected to move from 0.8 to 1.4 and -0.1 to 3.1 per cents respectively".

Pakistan's foreign currency reserves have fallen to $9 billion, half of what they were two years ago, according to the State Bank of Pakistan, despite GDP growth of 5.8 per cent, the highest in a decade, reports Efe news.

"After taking into account the current situation and consultation with leading economists, the government has made a decision to approach the International Monetary Fund for a bailout programme", Umar said in a recorded video message. The group recently downgraded global growth forecasts.

India to continue buying Iranian crude despite United States sanctions threat
Washington is also asking buyers of Iranian oil to slash imports to zero to force Tehran to negotiate a new nuclear agreement. India had planned to import about 25 MT of crude oil from Iran in 2018-19, up from 22.6 MT imported in 2017-18.

It predicted 2.9 percent USA growth this year, dropping to 2.5 percent next year, and to 1.8 percent in 2020, as the effect of US tax cuts wears off and the trade war with China inhibits growth.

Tuesday's report says governments should resist attempts to roll back banking regulations put in place in 2008 to stop a similar financial crisis happening again.

The report analysed China's public balance sheet and found that its general government net financial worth has deteriorated in recent years to about 8 per cent of GDP, largely because of subnational borrowing and underperforming public corporations.

The sources said the world body will also ask Islamabad to expand the tax net in the country, and added that the International Monetary Fund also wants Pakistan to decrease circular debts and losses in state institutions, the report said.

After 18 straight months of decline, the nation's inflation rate rose to 11.23 per cent in August from 11.14 per cent in July, the National Bureau of Statistics said last month.

Russian Federation was among the few energy-rich emerging market countries whose growth forecasts were bumped up. With record exports to China, the US and Germany all helping grow the overall value of Swiss exports by 4.8 billion Swiss francs (€4.1 billion) since the first quarter of 2017.

Nigeria's growth not enough to create jobs, says International Monetary Fund