
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 downThe 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.
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