Global debt levels reached a record $182 trillion in 2017, says International Monetary Fund

Pakistan       by Usman Arshad | Published

According to the Bretton Woods institution's latest World Economic Outlook Report on World Economy and Financial Surveys, the economic growth will however be higher at 7.6 per cent GDP in 2019 but will gradually dip to about 5.1 per cent GDP by 2023.

If projections are true, then India would regain the tag of fastest growing major economies of the world, crossing China with more than 0.7 percentage point in 2018 and an impressive 1.2 percentage point growth lead in 2019.

"As a result, estimates of 2017 public debt vary considerably: the official government debt figure is 37 per cent of GDP, while the data reported in the latest World Economic Outlook show it at 47 per cent of GDP, and the "augmented" debt measure, which includes more off budget borrowing by local governments, stands at 68 per cent of GDP", he said.

In a report released on Tuesday, the International Monetary Fund estimated that despite positive policy tailwinds in the US economy resulting from things like tax reform, growth will be less than previously expected next year, as a result of the trade war.

The trade confrontation weighs on China in particular, where growth is projected to slow to 6.6 percent this year and 6.2 percent in 2019, a downgrade of 0.2 points.

New IMF research shows emerging market countries excluding China could face debt portfolio outflows of up to $100 billion, a level last seen during the global financial crisis.

The OECD has also revised down its global growth forecasts.

More news: After an undisclosed security breach was revealed, Google+ will be shutting down

The cut its 2019 United States growth forecast to 2.5 percent from 2.7 percent previously, while it reduced China's 2019 growth forecast to 6.2 percent from 6.4 percent.

There's a 5 percent probability that emerging markets other than China could face debt-market outflows of at least $100 billion, on par with the capital flight during the financial crisis, the International Monetary Fund said. Global growth will slow to 3.6 per cent by 2022-2023, as growth in rich nations falls back to potential, it said. So, while debt-related risks in China are large, there are also buffers.

The report said: "In the United Kingdom, where the output gap is closed and unemployment is low, a modest tightening of monetary policy may be warranted, although at a time of heightened uncertainty, monetary policy should remain flexible in response to changing conditions associated with the Brexit negotiations".

The risk of a global financial crisis initiated by sharp capital outflows in emerging markets due to the divergence of monetary policies in the USA and developing countries remains small but will grow as the Federal Reserve continues to raise its interest rates, as it is expected to do this year and next.

"In several key economies, moreover, growth is being supported by policies that seem unsustainable over the longer term". 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.

Pakistan is also seeking fresh loans from China, which has already heavily invested in joint transport and energy sectors in Pakistan.

Related News:



Most liked

Jose Mourinho's touchline comments may be investigated by lip reader
The 25-year-old's performances have been inconsistent and so while some performances have been excellent, others have been poor. Pogba told L'Equipe: 'I have never played for France to be captain.

GOP, home to Trump and tea party, decries Dems' 'mob rule'
Too much anger produces self-defeating rhetoric that repels the very undecided voters that you are struggling to attract. With only a simple majority required to confirm judges, Democrats are unable to stop any nominee on their own.

In Oval Office Remarks, Kanye West Defends His Backing of Trump
West, a long-time Trump supporter, also decried the allegedly widespread expectation that black people should be Democrats. West has received a lot of backlash from fans and his fellow celebrities for his support of the president.

Meghan Markle's Ex-Husband Trevor Engelson Has Engagement Party
Afterward, the newlyweds plan a carriage ride through the streets of Windsor to give the public a chance to see them up close.

New York Yankees pitcher CC Sabathia critical of umpire Angel Hernandez
The expiration date: It's a little hard to make it out all these years later, but there's a good chance it says October 8, 2018. Angel Hernandez is a horrific umpire and it's insane Major League Baseball keeps running him out for playoff games.

TERRIFYING moment rocket SHUDDERS as crew fear for lives before EMERGENCY landing
The existing station crew is supposed to get its ride back home in a Soyuz capsule that is docked to the station. Kremlin spokesman Dmitry Peskov told reporters the most important thing was that the two men were alive.

Ben Affleck Signs For New Movie With Gavin O'Connor
Throughout the ordeal, Gunn's girlfriend of three years - Sun Records actress Jennifer Holland - has remained by his side. Despite its box office success, Suicide Squad was skewered by critics, who lamented the film's lack of cohesion.

Trump on 831 Stock Market Drop: Fed Has Gone Crazy
The Dow Jones stock market average dropped by 831 points, which is 3.15 percent of its opening value on Wednesday. US President Donald Trump warned on Thursday there is "a lot more" he could do to hurt China's economy.

Judge Dismisses Sexual Assault Count Against Harvey Weinstein
Evans told her friend when they walked home that night that she had flashed her breasts to Weinstein in the restaurant's hallway. The letter also said prosecutors had recently obtained an email that Evans wrote in 2015 to the man she later married.

Woman faces corruption charges after allegedly spending $21M at Harrods
Mrs Hajiyeva risks losing her property unless she can explain where the money used to purchase it originated from. On another occasion she spent £100,000 on Cartier jewellery and £20,000 on luxury men's goods.

Microsoft Open Sources 60,000 Patents To Protect Linux & Open Source
Members of the organization include Google , Sony, IBM , and Red Hat. In 2016, the company even became a member of the Linux Foundation.

Pakistan turns to IMF for aid
The report says that outflows could hit $100bn (£76.4bn) over a year, about 0.6% of emerging market economies' gross national income.

De Lima calls for renewed, sustained campaign against death penalty
Since we are abolishing the sentence, all executions should not be carried out", he said. "All death penalty will be abolished". On this important occasion, the European Union delegation to PNG calls for an end to state-sanctioned capital punishment.

US Grounds Global Fleet Of F-35 After South Carolina Crash
Government Accountability Office has projected a total lifetime cost of $1 trillion for the program. Sullivan asked whether the F-35 could hit an 80 percent readiness mark within a year.

Michael strengthens into Category 2 hurricane
Bottomline - Petro says Eastern and Central Carolina need to take Hurricane Michael seriously. Tuesday afternoon, President Donald Trump approved an emergency declaration for Florida.