International Monetary Fund warns: France, Germany and Italy will have the biggest economic slowdowns

The headquarters of the International Monetary Fund in Washington. India’s economy was a key beneficiary of falling crude oil prices between 2013 and 2015 given that low oil prices incentivise consumption

"The risk that current trade tensions escalate further with adverse effects on confidence, asset prices and investment is the greatest near-term risk to global growth", IMF Chief Economist Maury Obstfeld told a news conference, noting that USA trade deficits are likely to grow due to high demand, possibly inflaming trade tensions further.

An escalation of tariffs to levels threatened by the US, China and other countries would not only have a direct effect on demand, but would heighten uncertainty and hurt investment, the International Monetary Fund said.

The IMF lowered its 2018 growth projections for the United Kingdom from 1.6 per cent to 1.4 per cent in its monthly World Economic Outlook. For 2019-20, International Monetary Fund cut its projection by a sharper 30 basis points to 7.5%.

"Governments must also pay more attention to economic equity among citizens and especially protecting the poorest", Obstfeld said.

US President Donald Trump has continued to threaten the European Union with tariffs on a number of goods which has sparked fierce retaliation from trading partners.

"The greatest near-term threat to global growth", however, was the trade war among nations, which will have adverse effects on global confidence, asset prices, and investment, the report added.

Click here for enlarge
Click here for enlarge

Global cooperation and a "rule-based trade system has a vital role to play in preserving the global expansion". While the United States faces greater risks from trade, the fund said that Trump's tax cuts would also mean the American economy would continue to grow in line with its previous estimates of around 2.4 per cent this year.

The US economy is still seen growing by 2.9 per cent this year, and the estimate for China remains 6.6 per cent, with little impact expected near term from the tariffs on tens of billions of dollars in exports the countries have imposed on each other so far.

The IMF, however, noted that even the U.S. growth could decelerate over the next few years, as the long cyclical recovery ran its course and the effects of temporary fiscal stimulus waned.

The Economic Survey 2017-18 presented on 29 January had estimated that every $10 per barrel increase in the price of oil reduces economic growth by 0.2-0.3 percentage point, increases wholesale inflation by about 1.7 percentage points and widens current account deficit by about $9-10 billion.

The IMF left unchanged its global economic growth forecasts at 3.9 percent for both 2018 and 2019, compared to its previous forecast issued in April. France's GDP is expected to grow 1.8 percent and 1.7 percent.

"Its growth is set to increase from 0.8 percent in 2017 to 2.1 percent in 2018 and 2.3 percent in 2019 (0.4 percentage point higher than in the April WEO for 2019) on the back of an improved outlook for oil prices". The economy was projected to grow 7.8 per cent by 2019-20 by the Fund earlier, but now the projection stood at 7.5 per cent, according to the World Economic Outlook (WEO) Update, released on Monday.

Annabelle Neilson Dead - 'Ladies of London' Star Dies at 49
In a 2015 interview with DailyMail.com , the former model revealed she became a heroin addict at 16 but was able to get sober. According to her Bravo profile , she was a fixture in the global party circuit and born into a wealthy aristocratic family.

U.S., Russian Federation will ‘work jointly’ to ensure Israel’s security
US President Donald Trump said he and Russian President Vladimir Putin had a "good start" to their high-stakes summit in Finland. Before the presidents sat down for the luncheon, they posed for a photo with Trump's wife, U.S. first lady Melania Trump.

President Trump: Putin made ‘incredible offer’ in Russian hacking case
The damage inflicted by President Trump's naiveté, egotism, false equivalence, and sympathy for autocrats is hard to calculate. Trump immediately dodged, changing the topic without denouncing Russian Federation or even acknowledging any misconduct.

Related:

  • Donald Trump, Vladimir Putin meet for summit in Helsinki

    For the next hour-and-a-half, Trump and Putin are scheduled to hold one-on-one discussions, with only interpreters at their side. He called on Moscow and Washington to warm a period of frosty relations, largely because of the sizes of their nuclear arsenals.
    'Aquaman' movie trailer featuring Jason Momoa to release this weekend

    'Aquaman' movie trailer featuring Jason Momoa to release this weekend

    He compiled an article highlighting the 50 things you need to know about James Wan's Aquaman which you can read on Collider .com. Willem Dafoe, Temuera Morrison, Dolph Lundgren, Yahya Abdul-Mateen II and Nicole Kidman co-star in Wan's film.
    Kenya: Black Rhinos Die After Relocation to National Park in Kenya

    Kenya: Black Rhinos Die After Relocation to National Park in Kenya

    Disciplinary action will be taken if the investigation of the death indicates negligence, said Tourism Minister Najib Balala. Transporting wildlife is a strategy used by conservationists to help build up, or even bring back, animal populations .
  • 'Utterly ridiculous': Putin denies U.S.  election meddling in tense interview

    'Utterly ridiculous': Putin denies U.S. election meddling in tense interview

    He said his message was "best delivered in person", adding that he "spent a great deal of time" talking about election meddling. As the newspaper notes in its press release , both Trump and Putin have had " contentious " relationships with the media.

    Showtime and Sacha Baron Cohen Push Back Against Sarah Palin

    Ruddick is the same character Baron Cohen adopted while speaking with Palin, for a segment that has yet to air. The image on the board showed the actor sitting in a wheelchair with a prosthetic leg while wearing a U.S.

    "Sue the European Union" - Donald Trump's advice to Theresa May

    In an interview with The Sun , Donald Trump said he would have negotiated "very differently" if he was in Theresa May's position. The two men have met twice before at other events and spoken by phone at least eight times.
  • Wholesale inflation hits 4 year high to 5.77 pc in June

    Wholesale inflation hits 4 year high to 5.77 pc in June

    The Wholesale Price Index ( WPI ) based inflation stood at 4.43 per cent in May, according to government data released on Monday. The apex bank has revised upwards its retail inflation projection for October-March to 4.7 per cent from 4.4 per cent earlier.
    Top three players who could have played in their last World Cups

    Top three players who could have played in their last World Cups

    However, they both crashed out at the last-16 stage meaning neither Messi nor Ronaldo have scored a goal in the knockout stages. The two superstars were vying to get their hands on the biggest prize in football for the first time in Russian Federation .

    May bows to Brexit pressure in parliament

    Mrs May faced a potential revolt on the Taxation (Cross-border Trade) Bill, often referred to as the Customs Bill. A second forces the Government to commit itself in law not to allow a customs border down the Irish Sea.
  • Photos of the christening of Prince Louis - cute! - CBBC Newsround

    That said, photographer Matt Holyoak did include a hidden tribute to the British monarch in Louis's official christening photots. Louis was sound asleep as he was carried into the chapel by his mother for the christening ceremony which lasted 40 minutes.
    Woman has major leg trauma after lava hits boat in Hawaii

    Woman has major leg trauma after lava hits boat in Hawaii

    Snyder said neither the exact location of the incident nor the total number of passengers aboard the boat were immediately known. Geological Survey said the lava was transforming into a fast-flowing river capable of covering roughly 200 yards per hour.
    Another Tory MP quits from Theresa May's government over Brexit

    Another Tory MP quits from Theresa May's government over Brexit

    One junior minister Guto Bebb, resigned rather than support the ERG customs union amendment, which narrowly passed by 305 to 302. Instead of facing them down and fuelling tensions, her spokesman said the government would accept their four amendments.

Comments

Latest news

Rita Bhaduri Passes Away At The Age Of 62 - Rest In Peace!
Ms Bhaduri was being treated at Mumbai's Sujay Hospital in Vile Parle for a kidney ailment , news agency IANS reports. I am feeling extremely sorry that I won't be able to go for her funeral since I had my shoot scheduled for the day.

Apple teases 70 new characters
There are some more obtuse new designs too, notably a nazar symbol (to guard against the evil eye) and an infinity symbol. There's also additional food emoji for mango, lettuce, cupcake, moon cake and other popular items.

North Cornwall MP Scott Mann resigns over Theresa May's Chequers Brexit plan
His criticism was followed up by a direct attack on the "oddly secretive" Mrs May by influential Tory Brexiteer Jacob Rees-Mogg. Eurosceptic Conservatives are planning to vote against the government on several amendments to the trade bill.

Netflix shares plunge due to lower subscriber growth
Netflix is hoping a flood of content from new sources including the Obama family will help push new subscribers to the service. The company garnered 112 Emmy Awards nominations last week, more than any other television network.

Haiti's prime minister resigns amid deadly demonstrations over fuel prices
Over the past week, major roads have been blocked off, shops have been vandalized, and protestors have set fire to numerous tires. Moise said on Twitter he would address the country Saturday night "in a special edition on the National Television of Haiti".

BIRDS OF PREY Movie Line-Up Possibly Revealed article
Margot Robbie 's return as Harley Quinn is set to happen early next year when the upcoming Birds of Prey film begins filming. And who will the Birds be fighting when they hit the big screen? Black Canary is a metahuman with a supersonic scream.

Trump Calls Mueller Probe ‘Disaster’ While Standing Next to Putin
It was a remarkable break with United States intelligence officials and the Justice Department. Putin dismissed as "ridiculous" claims of Russian interference in the 2016 election.

Blake Shelton Falls Onstage During Concert, Jokes 'I'd Been Drinking...a Lot'
Country star Blake Shelton has confessed he was drunk when he slipped and fell onstage during a concert in OR over the weekend. Blake Shelton has always been vocal about the fact that he likes to drink, but it's hard to tell if he's kidding or not.

British PM: Trump 'told me to sue the EU'
Facing down the critics, she's reminding MPs to keep their "eyes on the prize" or prepare for the no-deal scenario. Greening said she would campaign to keep Britain in the European Union , if a new referendum were held.

Amazon's Prime Day runs into snags swiftly
Some of the heaviest discounts are available on brands like Biba, Marks & Spencer, GAP, Vero Moda, W, Van Heusen, and Pantaloons. You'll also get Far Cry 5 Limited Edition for £29.99 on PS4 and for£29.99 on Xbox One - saving you 30% on the price of each.

The Most Brutal Fortnite Emote Featured In The World Cup Final
Ominously for the competition, France only look like getting stronger as Mbappe and a host of youthful teammates mature. The World Cup is now officially over, with France emerging as the champions.

US Arrests Russian Agent for Conspiring to Influence Politics
Trump Jr. testified to lawmakers a year ago that he briefly met Torshin at a dinner with a few dozen officials from the NRA. Driscoll called the substance of the charge levied against her in the complaint unsealed Monday "overblown".

Amazon Prime Day Starts Today, Which Means You Need Amazon Prime
If you haven't already been getting them, it may not be too late, you can read all about the pre-Amazon Prime Day deals here . Even if you're not registered, you can still take advantage of the offers by registering for the 30-day free trial .

Netflix plunges as subscriber growth disappoints
Subscriber additions: 5.1 million total - 670,000 in the United States and 4.47 million internationally. Global subscriber net additions are projected at 4.35 million, again, below the average 5.095 million.

Best of Amazon Prime Day
In the years since, Prime Day has grown into a shopping extravaganza in its own right, with deep discounts on all kinds of items. Using the app, click into the menu section in the upper left corner and choose "Today's Deals", then click the "Upcoming" tab.

Other news