Major Gulf oil exporters, including Saudi Arabia, have posted budget deficits since the crash of the global oil market in 2014. She said that the new Chinese growth figures are steady with International Monetary Fund forecast. The update came as China reported growth of 6.6 per cent for 2018, its worst performance for 28 years. The central bank forecast growth of 1.7 per cent this year, down from its October prediction of 2.1 per cent.
The World Bank and the Organization for Economic Cooperation and Development have also downgraded their world growth forecasts. Even with the decline Tuesday, the S&P 500 is up 5.1 percent in 2019 and has jumped more than 12 percent since hitting its recent low on December 24.
In London the FTSE 100 index slid 1% as Germany's DAX and the French CAC 40 both gave up 0.4%. Weakness for German auto manufacturers due to new fuel emission standards, and soft domestic demand in Italy after recent sovereign and financial risks, were also hampering global growth, the fund said on Monday.
The global lender on Monday unveiled a gloomy worldwide economic outlook, as it warned of risk factors ranging from the US-China trade war to Brexit.
The dollar fell against the Japanese yen on Tuesday, as worries about flagging global growth and concerns about continuing U.S. An escalation of trade tensions beyond those already incorporated in the forecast remains a key source of risk to the outlook.
"Any upside for sterling in the near term may be limited", said Capital Economics analyst Liam Peach.
"China will continue to be a savings surplus country for some time, though the saving is declining", Fang Xinghai said.
Claudio Ranieri says Fulham's late defeat to Tottenham is down to inexperience
As for the Cottagers, Claudio Ranieri's side remains five points from safety following their 2-1 defeat away to Burnley. If anything Fulham looked the more unsafe side with Ryan Babel making a lively debut.
Sterling was a shade firmer at US$1.29 after data showed British workers' pay growth hit a new 10-year high and employment had grown by much more than expected in the three months to the end of November.
The main policy priority is for countries "to resolve cooperatively and quickly their trade disagreements and the resulting policy uncertainty, rather than raising harmful barriers further and destabilizing an already slowing global economy".
The gloomy International Monetary Fund forecasts, released on the eve of the World Economic Forum in Davos, Switzerland, highlighted the challenges facing policymakers as they tackle an array of actual or potential crises, from the US-China trade war to Brexit.
"Global growth in 2018 is estimated to be 3.7 percent, as it was last fall, but signs of a slowdown in the second half of 2018 have led to downward revisions for several economies".
The IMF's growth outlook for the 19 countries that use the euro currency has been reduced to 1.6 per cent from 1.8 per cent.
Meanwhile, Mexico saw sharp downward revisions of 0.4 and 0.5 this year and next, to 2.1 percent and 2.2 percent, and crisis-stuck Venezuela is likely to see an "even more severe contraction".