International Monetary Fund and Pakistan Officials Scheduled to Meet Today to Seek Bailout

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Beyond 2019, the International Monetary Fund sees India's growth rate improving "owing to structural reforms and a still-favourable demographic dividend".

The UK economy is expected to grow by 1.4 percent this year - down from April's prediction of 1.6 percent - while predicted growth for 2019 remains at 1.5 percent, a slowdown from 1.7 percent in 2017.

Although the newly projected rate is same as last year's rate of 3.7 percent, this growth exceeds that achieved in any of the years between 2012 and 2016, and it occurs as many economies have reached or are nearing full employment and as earlier deflationary fears have dissipated.

The IMF had originally estimated growth of + 0.6%, as of April 2018, but now added another 1.8% to the growth rate.

In this worst case scenario, the United States economy would take a significant hit, while economic growth in China would drop below 5% in 2019, compared with a current prediction of 6.2%.

"But, first we will try to get assistance from other countries as we have requested three countries to deposit money in Pakistan's State Bank that would help boost national reserves", he said, without offering details or taking any name on the matter.

"We have not been formally approached yet", said Maurice Obstfeld, the IMF's top economist, during the fund's annual meeting in Bali.

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This is down from its July forecast of 3.9 percent growth for both years.

Over the medium term, growth is expected to gradually slow to 5.6 percent as the economy continues to make the transition to a more sustainable growth path with continued financial de-risking and environmental controls, it noted. It believes the Australian economy will expand by 2.8 per cent next year.

In its suggestions to boost growth, the International Monetary Fund said the United Kingdom should look at easing planning restrictions to boost housing supply, improve the quality of transport infrastructure, and facilitate the relocation of workers in industries that are likely to be more affected by higher trade barriers after Brexit.

"The continent could do much better once these economies are on a more solid footing, particularly South Africa and Nigeria, because they are really large and affect a number of countries in their neighbourhood".

"The fast rise in global oil prices, normalization of USA monetary policy, and tightening financial conditions for emerging markets are adding to this hard picture". The rupee was trading at 124.3 at close of business Monday, before the announcement was made.

On Wednesday, the Prime Minister of Pakistan, Imran Khan vowed to eliminate the economic crisis out of the country, and said it only needs $10-12 billion to fix it.

"But there is no denying that the susceptibility to large global shocks has risen". "Any sharp reversal for emerging markets would pose a significant threat to advanced economies", said Obstfeld.