International Monetary Fund lowers South Africa’s economic growth forecasts, urges reforms

IMF lowers SA's economic growth forecasts

He said that the government should try its best to deal with the IMF's demand to further increase the price of gas and electricity and tighten the monetary policy as it would hurt the masses and the economy.

This figure is particularly worrying when combined with the special reference in the same report to countries that have experienced periods of deep recession, as Greece is the sole member of the European Union to have experienced a more than 20 percent per capita decline in its gross domestic product in the last 50 years: From 2010 to 2013, per capita GDP fell 26 percent in Greece, and the medium-term prospects point to a very slow recovery. The S&P 500 index edged 0.1 percent lower to 2,884.43, while the Dow Jones Industrial Average gained 0.2 percent to 26,486.78. The Nasdaq Composite dropped 7.44 points, or 0.10 per cent, to 7,728.51 at the opening bell.

Output could fall by more than 1.6 per cent in China and over 0.9 per cent in the USA next year, according to the IMF's models.

The fund downgraded its forecast for USA growth next year to 2.5 per cent, down 0.2 percentage point from July, after factoring in the impact of tariffs imposed by the Trump administration and retaliatory duties by other nations.

A bull run has taken U.S. equities to record highs this year.

The IMF now expects South Africa's economy to expand 0.8 percent, down from a forecast of 1.5 percent in July.

This high rate of U.S. dollar has created an uncertain behavior in the market. Yet that followed a 4.3 percent slide on Monday, which was the largest daily fall since early 2016.

The International Monetary Fund's Financial Stability Report says that although banks are far safer than they were in 2008 there are new risks.

"The downward revisions reflect to an important extent the worsening of growth prospects for Iran, following the re-imposition of U.S. sanctions", it said.

Jesus not happy Guardiola picked Mahrez to take crucial penalty
Guardiola defended Mahrez, who missed a great chance to win the game when he blasted an 86th minute penalty over the bar. Nevertheless, the second half started with more objective by both the teams and they got many chances to win the game.


Maurice Obstfeld, economic counsellor for the International Monetary Fund, said: 'Trade policy reflects politics, and politics remain unsettled in several countries, posing further risks.

At the top of the list are worries about emerging economies, especially Argentina and Turkey, two countries with heavy external debt that have had to raise interest rates sharply in recent months.

Tria called for a constructive discussion with Brussels over the budget and said he did not think Italy's deficit forecasts were so shocking.

Almas Hyder said that government, Ministry of Finance and State Bank needed to ascertain the factors weakening the value of rupee and check the possibilities of undue speculations and panic buying.

The fund upgraded its forecast for Japan slightly to 1.1 per cent growth this year, up 0.1 point from July.

Oil prices rose on Tuesday on growing evidence of falling crude exports from Iran, OPEC's third-largest producer, before the imposition of new USA sanctions and a partial shutdown in the Gulf of Mexico because of Hurricane Michael. Brent crude, used to price worldwide oils, rose 35 cents to $84.26 per barrel. Brent hit a four-year high of $86.74 last week but slipped as low as $82.66 on Monday.

ENERGY: Benchmark U.S. crude added 31 cents to $74.60 a barrel in electronic trading on the New York Mercantile Exchange. Trump has justified the higher US tariffs as a response to the trade imbalance between the two countries, and China has swiftly responded with higher levies on USA imports.

Iranian crude exports, which reach some 2.5 million barrels per day normally, have plunged by over half a million bpd and are expected to dive further when expanded sanctions on oil take effect next month, depriving Tehran of its main source of income.

Related News:



Most liked

EPL: Moyes reveals what Manchester United will do to Mourinho
Mourinho also made a gesture with his right hand while speaking, pointing with his little finger. Manchester United's comeback win against Newcastle last weekend saved Mourinho's job.

Brett Kavanaugh to Hear First Arguments as a Supreme Court Justice
Kavanaugh also noted the first group of clerks he's hired as a justice are all women, a first in the history of the Supreme Court. In his speech at the ceremony, Kavanaugh said the emotional Senate confirmation process "tested" him, "but it did not change me".

Ramaphosa appoints new finance minister
The announcement led to a strengthening of the South African currency, the rand , which had weakened after earlier reports of Mr. Both Zuma and the Guptas - who are at the heart of the inquiry into so-called "state capture" - have denied any wrongdoing.

The Dishonesty of Susan Collins
Collins' claims to be a moderate but that her speech impressed him with its thoroughness and thoughtfulness. Collins, one of the few pro-choice Republicans in the Senate, has asserted that Kavanaugh considers Roe v.

Morphed clip of Akshay Kumar speaking against Tanushree Dutta gets removed
When Tanushree Dutta levelled serious allegations of sexual misconduct against Nana Patekar , he maintained a stoic silence. Dutta's lawyer Nitin Satpute told ANI that she has been asked to record her statement before the police on 9 October.

What next for Khabib Nurmagomedov & Conor McGregor after UFC 229 turmoil?
This sparked a brawl inside and outside the octagon, which involved members of Nurmagomedov's team. They were released when McGregor confirmed he didn't want to press charges.

FACT CHECK: 'Got Another Friend Request from You' Facebook Warning
Facebook shut down Paper, a stand-alone iOS app that was part News Feed, part newsreader, in 2016, two years after its launch. Ignore the message that is going viral in FB Messenger right now.

Pompeo’s China visit marked by frosty talks and ‘fundamental disagreement’
Trump met with Kim in Singapore in June and - at the time - announced that the two countries are set to " start a new history ". USA officials have thus far said the penalties will remain in place until the North's denuclearization is fully verified.

Arsenal legend praises Pogba contribution in Manchester United comeback win
These are the games Mourinho's team will be judged in. "I'm amazed", said Mourinho when asked about their backing. Mata dedicated the win to the fans and said they don't deserve what they are going through this season...

Rocket's first stage lands back at launch site
A sonic boom is a sound associated with the shock waves from an aircraft or vehicle traveling faster than the speed of sound. LZ-4 is built on the former site of Space Launch Complex 4W, from which Titan rockets were previously launched.

Manchester City are scared of Liverpool, and so they should be
We don't know in this moment as well if he can train tomorrow, we have to see. So you can understand why people might think they have City's number.

Central American storm may turn to tropical depression in coming days
Happy Saturday night! While you're enjoying your weekend, things are looking to become busy in the world of weather. The tropical system will approach the Gulf Coast just as the cold front pushes in to approach the Gulf on Tuesday.

Liverpool show interest in Arsenal 27-year-old player
With his passion, I spoke with him [and said] the most important thing is - when the team need his help - [he] has to be prepared. Emery called on the pre-season signing from Bayer Leverkusen to seize his chance, saying: "I'm very happy with Leno".

After Central Sulawesi Quake, Empowering Coastal Communities Will Save Lives
But the Sulawesi tsunami was "atypical" and could not have been simulated, said Girardet, of the U.N. The work to retrieve bodies has been hampered by lack of heavy equipment to dig them out.

Pompeo to travel to meet Kim Jong Un in Pyongyang next week
The United States argues the sanctions should remain in place until North Korea has fully and verifiably denuclearized. Pompeo would also travel to Japan, South Korea and China on October 6-8 to brief them about his visit, she added.