It's so concerned about the potential for a bad deal it has downgraded global economic growth to 3.7% for both 2018 and 2019, in its latest World Economic Outlook.
The fund cut its 2019 U.S. growth forecast from 2.7 per cent to 2.5 per cent, and the China growth forecast from 6.4 per cent to 6.2 per cent. It is projecting a current account of -4.1 per cent of GDP in 2018, -4.0 per cent of GDP next year and-3.6 per cent of GDP.
Mr Milesi-Ferretti noted Nigeria's (economic) growth of about 1.9 per cent this year to rise to about 2.3 in 2019, with South African economy, now in technical recession at only 0.8 per cent growth rate this year.
The IMF predicted United Kingdom growth to would be 1.4% in 2018, rising to 1.5% in 2019, while the eurozone 2018 growth forecast was cut to 2.0% from 2.2%.
Fed rate hikes are already increasing pressure on emerging market economies by fueling an outflow of capital as investors seek higher returns.
Hubble placed in safe mode as gyro issues investigated
Broken one of the gyroscopes that keep the telescope in the right direction. As of now, two of those enhanced gyros are in running condition.
She said a safer global economy also means tackling the issue of sustainability, including the existential threat of climate change.
IMF's forecasts for Hong Kong's economic outlook are mixed: it raises its forecast for 2018 by 0.2 percentage points to 3.8%, while cutting its forecast for 2019 by 0.3 percentage points to 2.9%. German growth was revised down to 1.9 percent in both 2018 and 2019 due to a slowdown in exports and industrial production.
Global growth is expected to remain steady at 3.7 per cent in 2020, as the decline in advanced economy growth with the unwinding of the U.S. fiscal stimulus and the fading of the favorable spillovers from United States demand to trading partners is offset by a pickup in emerging market and developing economy growth.
The United States, which strongly influences the International Monetary Fund, has said it will not finance the repayment of Pakistan's Chinese loans.
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.
The IMF as usual urged emerging economies to accelerate structural reform measures to strengthen their economic fundamentals in the long term. Interest rates remain low by historical standards, and financial conditions are still supporting growth, it said.
The IMF chief met with Pakistani officials later Thursday and said afterwards that a team would visit Islamabad for talks on a possible bailout of its shaky economy. The acceleration relative to 2016-17 reflects a more supportive external environment, including stronger global growth, higher commodity prices, and improved capital market access, following efforts to improve fiscal balances in the aftermath of the commodity price slump.
- Social, Economic Stress Blamed For Mental Illness Among Youth
- Razer Phone 2: Release date, Price & Specs
- UK PM Theresa May says Brexit deal is close - Financial Times reports
- Princess Eugenie and family arrive in Windsor day before royal wedding
- President Trump has a Thursday lunch date with Kanye West
- 17 surreal things that happened during the Donald Trump-Kanye West summit
- After Stock Market Drop, President Trump Says Federal Reserve ‘Has Gone Crazy’
- Eagles Get Rocked At Home By The Vikings, 23-21
- USC closes campus ahead of Hurricane Michael
- Channing Tatum Is Dating Singer Jessie J Following Jenna Dewan Split