International Monetary Fund says not approached by Pakistan for financial assistance

President Trump addresses the International Association of Chiefs of Police at its annual convention Monday in Orlando

President Trump addresses the International Association of Chiefs of Police at its annual convention Monday in Orlando

Speaking today at the International Monetary Fund and World Bank annual meetings in Bali, Indonesia, Ms Lagarde said: "The real question is: Is the economy strong enough?"

The growth rate of United States for 2018 is 2.9 per cent and that of 2019 has been powered to 2.5 per cent.

The ongoing trade war between the US and China could start having material effects on the economies of both countries within the coming years, according to new projections from the International Monetary Fund (IMF).

"Notwithstanding the present demand momentum, we have downgraded our 2019 United States growth forecast owing to the recently enacted tariffs on a wide range of imports from China and China's retaliation". Pooling investment fees on various government financial assets also can improve returns for taxpayers, the report said.

Media captionStorms, viruses, bankers: What could cause another economic crisis?

The IMF also warns market investors, who have seen the largest upward bull run in stocks in history.

The report says they are in danger of becoming complacent about the chances of an economic shock to the system.

The central bank believes that this adjustment in the exchange rate along with the lagged impact of recent hikes in the policy rate, and other policy measures to contain imports would correct the imbalances in the external account.

Interest rates are rising and quantitative easing - money printing - being dialled back.

Over the last few months, the Chinese government has urged banks to lend more and called on local governments to speed up bond issuance to raise funds for infrastructure spending.

Thousands of security personnel have fanned out around key venues in Nusa Dua, just south of Bali's main worldwide airport, with some 32,000 delegates, including finance ministers and central bankers, attending the IMF-World Bank meetings.

Among emerging market and developing economies, the growth prospects of many energy exporters have been lifted by higher oil prices, but growth was revised down for Argentina, Brazil, Iran, and Turkey.

"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. "China's non-financial corporate sector leverage has been rising and is now well above global historical benchmarks", the report noted. India's medium-term growth prospects remain strong at 7.75 per cent, benefitting from ongoing structural reform, but have been marked down by just under 0.5 percentage point relative to the April 2018 WEO, the International Monetary Fund said.

The IMF said a high interest burden and risks from rising yields in India also require continued focus on debt reduction to establish policy credibility and build buffers.

The Federal Reserve, the US central bank, has raised short-term USA rates three times this year as the American economy gains strength more than nine years after the end of the Great Recession.

That would be "of a magnitude" similar to the financial crisis.

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