A healthy 7.5 per cent growth is what the International Monetary Fund had predicted for India for this year, its Chief Economist Gita Gopinath told NDTV today. And China, the world's second-biggest economy, said it had slowed to its weakest pace since 1990.
In a report released on Monday, the global body cut its 2019 global growth forecast to 3.5 percent from previous estimates of 3.7 percent. The fund cited heightened trade tensions and rising interest rates.
The International Monetary Fund's warning of a darkening outlook on Monday, after China's confirmed its slowest growth rate in almost 30 years, continued to weigh on the mood.
The IMF is not alone in its pessimism.
Most analysts include in China's tally of U.S. Treasuries much of the amount that's held in the accounts of Belgium, given they say it is home to Chinese custodial accounts. Official figures yesterday showed that China's economy expanded at 6.6 percent a year ago - the slowest pace since 1990.
While, the Chinese growth rate has been on a downward slope, according to IMF, India has experienced an upward trajectory in these years.
The Euro took a small leg lower after the International Monetary Fund released its latest growth forecasts, and it's not a rosy outlook across the board.
Icy conditions predicted as Berkshire hit with Met Office weather warning
Largely dry with clear spells, although spells of rain will blow into western coastal areas, turning to hill snow further inland. This will then be followed by cold and bright weather on Monday, with heavy rain, gales and some snow likely from Monday night.
The downgrade mainly reflected weakness in Europe, with Germany hurt by new car-emission rules, Italy under market pressure due to Rome's recent budget standoff with the European Union, and Britain's planned exit from the EU hanging over the bloc as well.
The IMF has lowered its growth forecasts from 3.7 per cent in 2018 to 3.5 per cent in 2019. That is partly a result of China's deceleration, which pinches developing countries that supply it with raw materials such as copper and iron ore.
The IMF, in its World Economic Outlook Update, titled 'A Weakening Global Expansion, ' revised down the country's Gross Domestic Product projection for this year to two per cent from the 2.3 per cent projected in October 2018.
The lender further said China's growth slowdown could be faster than expected, particularly if trade tension continued, and that could trigger abrupt sell-offs in financial and commodity markets as was the case in 2015/16. The IMF said a failure to resolve trade disputes could further destabilise a slowing global economy.
Rising interest rates in the USA and elsewhere are also pinching emerging-market governments and companies that borrowed heavily when rates were ultra-low in the aftermath of the 2007-2009 Great Recession. The Washington-based lender said the outlook for emerging markets and developing economies reflected the continued headwinds from weaker capital flows following higher USA policy rates and exchange rate depreciations.
In the currency markets, the dollar held at a near three-week high as investors sought the relative safety of the US currency.