Meanwhile, in own speech, the IMF Economic Counsellor and Director of Research Department, Mr. Maurice Obstfeld at a press briefing on the World Economic Outlook (WEO), in Bali, Indonesia, yesterday said the Fund has cut global growth projection to 3.7 per cent for this year and next year.
Earlier, the Asian Development Bank (ADB) announced that it will provide $7.1 billion in financing to help Pakistan achieve inclusive and sustainable growth over the next three years. "Risks to global growth skew to the downside in a context of elevated policy uncertainty", said the International Monetary Fund.
It said the government would need to do more to retrain or relocate workers in industries that are "likely to be more affected by higher trade barriers after Brexit".
"Considerable progress was made in Russian Federation in recent years to shore up financial stability, including by closing weak banks, introducing reforms to the resolution framework, enacting measures to reduce dollarization, and increasing the risk weights of unsecured consumer and mortgage loans", the International Monetary Fund said. Based on its July and September 2018 IMF Staff Report (part of Article IV assessment), it projected 6.7 percent growth for next year.
The fund left its 2018 USA forecast unchanged but cut its expectation for next year, citing the impact of the trade conflict. "In Angola, inflation is projected to fall to 20.5 per cent in 2018 from 29.8 per cent in 2017, and to decline further to 15.8 per cent in 2019", it added.
According to a media report, State Bank of Pakistan had viewed that the exchange rate of Rs137 to a dollar by the end of current fiscal year in June 2019 would be sufficient to address the challenges.
The IMF has also projected the economy will grow at an average of 4,7 percent between next year and 2023.
The IMF report also warned that most countries must build fiscal buffers to make room for policy responses to the "next recession" and reduce the long-term costs of servicing high public debts. Emerging Asia includes ASEAN 5 countries plus China and India.
The Philippines' 6.5 percent 2018 projection is the second highest growth estimate in the trade bloc after Vietnam's 6.6 percent.
Core inflation, which excludes volatile items such as energy, will vary from country to country, it added.
"That is going to trigger some outflows of capital that has flown very strongly from advanced economies to emerging markets in recent years", Adrian said at a briefing in Bali on Wednesday.
Broadly speaking, global financial conditions remain accommodative and supportive of near-term growth, albeit somewhat tighter than six months ago.
The IMF said the United Kingdom was investigating ways to generate more income from government assets, though these are expected to be limited compared with the reduction in oil income and the cost of bank rescues.
The IMF added that "fiscal policy should aim to rebuild buffers for the next downturn, and the composition of public spending and revenues should be created to bolster potential output and inclusiveness".
The IMF expects the United States economy to continue growing this year at 2.9%, but sees that rate falling to 2.5% next year amid the country's escalating trade war with China.
The IMF-World Bank meeting is an annual summit to discuss global financial and economic issues, including global economic outlook, poverty eradication, and aid effectiveness.