Page 5 - Imf

IMF's Pak loan review: India to question Pakistan's Brics Bank stake plan

India has generally abstained from voting on loans sought by Pakistan in the IMF's executive board meetings

US tariffs, if sustained, will impact the economies of Mexico, Canada: IMF

IMF spokesperson Julie Kozack said the IMF would release a more comprehensive assessment at the spring meetings of the IMF and World Bank in Washington in April

Cong cites IMF report to slam govt; calls for boosting consumption, policy

Citing an IMF report to flag "tepid" private investment growth in India, the Congress on Thursday said the way out of the current "economic slump" needs measures to boost consumption, enhancing policy predictability, and rationalising trade policy. Congress general secretary in-charge communications Jairam Ramesh said the International Monetary Fund (IMF) has devoted an entire section to "Reigniting Private Investment in India" in its just-released annual India Article IV Consultation Report. "Somewhat unusually, it is a strong--if implicit- critique of the Modi government's policies and actions," he said in a statement. "The report underscores the tepid private investment growth in India, noting that 'private corporate investment has been sluggish especially compared with historical averages.' Notably, the situation is only getting worse, since 'nominal investment growth by private corporates appears to have decelerated further from 21 percent in 2022/23 to 13 percent in 2023/24',

In address to congress, Argentine President Milei promises IMF deal

Argentina's libertarian president Javier Milei signalled late Saturday that a new deal with the International Monetary Fund was imminent, as he used his annual address to congress to project an optimistic picture of his economic overhaul following a divisive first year in office and recent swirl of controversies. In a speech that played to the sentiments of his right-wing base but included little in the way of new policy, Milei promised the crisis-stricken nation that, in the coming days, he would ask congress to support the government in this new agreement with the International Monetary Fund" even as it seemed Argentina had yet to close the deal. Revisiting the economic themes of his 2023 presidential campaign ahead of crucial midterm elections in October, Milei declared: We went from talking about hyperinflation to talking about long-term stability. He cited his standard refrain about the government's success in dragging down the monthly inflation rate from a peak of 26 per cent

India to remain fastest growing major economy with 6.5% growth in FY26: IMF

Multilateral financing agency International Monetary Fund (IMF) has said that India will retain its position as the fastest-growing major economy by clocking a GDP growth of 6.5 per cent in 2025-26, on the back of robust private investment and macroeconomic stability. India's strong economic performance, the IMF said, provides an opportunity for the country to advance critical and challenging structural reforms to realise the ambition of becoming an advanced economy by 2047. "Real GDP is expected to grow at 6.5 per cent in 2024-25 and 2025-26, supported by robust growth in private consumption on the back of sustained macroeconomic and financial stability. According to the second advance estimate released by the Indian government, the country's economy is expected to clock a growth rate of 6.5 per cent during 2024-25. Headline inflation is expected to converge to target as food price shocks wane," the IMF said after Article IV consultations with India. The IMF statement also underli

Sri Lanka gets fourth tranche of $334 million bailout package from IMF

The IMF has agreed to release the fourth tranche of USD 334 million from its USD 2.9 billion bailout package to Sri Lanka to strengthen the island nation's recovery from its 2022 bankruptcy. The release of the fourth tranche was approved on Friday after the Executive Board of the International Monetary Fund (IMF) completed the third review under the 48-month Extended Fund Facility (EFF) Arrangement to Sri Lanka. The global lender said it would release about USD 334 million to the crisis-hit nation, bringing total funding to around USD 1.3 billion. The IMF said Sri Lanka has performed strongly under the programme. "All quantitative targets for end-December 2024 were met, except the indicative target on social spending. Most structural benchmarks due by end-January 2025 were either met or implemented with delay. The recent successful completion of the bond exchange is a major milestone towards restoring debt sustainability," the IMF said in a statement. "Reform efforts are bearing f

Countries need to put public debt on sustainable path: IMF MD at G20 meet

Most countries need to put public debt on a sustainable path and rebuild fiscal buffers, International Monetary Fund (IMF) Managing Director Kristalina Georgieva told economic leaders from the G20 countries. Georgieva was addressign the first meeting of the G20 Finance Ministers and Central Bank Governors in Cape Town on Thursday. The meeting was hosted by South Africa, which holds the G20 Presidency for 2025. On the fiscal side, most countries need to put public debt on a sustainable path and rebuild fiscal buffers, Georgieva said. While mobilising more domestic revenues is crucial in many countries, it is equally important to promote more efficient public spending. The two go hand-in-hand to ensure that countries have the fiscal space to meet future shocks and provide the basis for higher future growth, she added. Georgieva said it was critical that countries embrace ambitious reforms to lift productivity and enhance growth prospects. The specific priorities will vary from coun

Reducing fiscal deficit to around 3% of GDP difficult: Govt to IMF

The report further noted that both the IMF and the government saw a need for medium-term fiscal consolidation but considered targeting a more gradual pace of adjustment to be appropriate

IMF keeps India's 'stabilised' exchange rate classification through 2024

The IMF had first moved to the "stabilised" classification for India from "floating" in December 2023

IMF praises Pakistan PM's actions to strengthen economy through reforms

The International Monetary Fund (IMF) on Wednesday expressed support for decisive actions by Prime Minister Shehbaz Sharif's government for the betterment of Pakistan's economy. Pakistan and the IMF last year signed a USD 7 billion Extended Fund Facility (EFF) loan programme to help the cash-strapped country tackle its balance of payment issue while implementing tough conditions. IMF Managing Director Kristalina Georgieva, who met Sharif during the prime minister's visit to the United Arab Emirates, in a post on X said: I am encouraged by their strong commitment to Pakistan's IMF-supported reforms and support their decisive actions to pave the way to higher growth and more jobs for Pakistan's youthful population. The comments come amid the IMF team's visit to Pakistan to scrutinise the judicial and regulatory system as part of the ongoing USD 7 billion programme to address governance and corruption vulnerabilities. According to a statement from the PM Office, the premier held a ...

World Bank's triple-A rating threatened if Trump pulls support: Moody's

Last week, Trump signed an Executive Order to review US government support to all international intergovernmental organisations of which it is a member and to withdraw from some UN organisations

Sri Lanka's fourth IMF tranche of $3 bn to be released soon: Officials

Sri Lanka's fourth tranche of nearly USD 3 billion bailout facility by IMF will be materialised in the coming months, a top official of the world body has said. The National People's Power (NPP) government has already reached a staff-level agreement with the IMF on the third review of the USD 3 billion extended arrangement under the EFF in November. On Thursday, Julie Kozack, IMF spokesperson, said in Washington that the USD 333 million fourth tranche is expected to be released in the coming months after the IMF executive board approves it. She said the review would focus on the full implementation of prior action under the programme. Since the IMF and Sri Lanka entered the bailout in March 2022, three tranches of over USD 330 million have been disbursed. On Thursday, in Colombo President Anura Kumara Dissanayake met the IMF officials to discuss Dissanayake's first full government budget for 2025. The President's Media Division (PMD) said a comprehensive discussion regarding the

IMF downgrades Pakistan's GDP growth outlook for 2025 from 3.2% to 3%

The International Monetary Fund (IMF) has revised cash-strapped Pakistan's economic outlook, downgrading its projected Gross Domestic Product (GDP) growth for 2025 to 3%, down from 3.2% forecasted just three months ago, according to a media report on Saturday. The adjustment comes amid a broader global economic assessment presented in the IMF's "World Economic Outlook Update: Global Growth Divergent and Uncertain", The Express Tribune newspaper reported. The IMF's revised projections also indicate that Pakistan's GDP growth will remain at 4% in 2026. However, the latest downgrade reflects ongoing economic challenges in the country, although the IMF did not provide specific reasons for the revision. This latest revision mirrors the forecast made by the Asian Development Bank (ADB) last month, which also adjusted Pakistan's growth forecast to 3% for the fiscal year 2024-25, up from a previously projected 2.8%. Both institutions have cited challenges faced by Pakistan's economy but h

IMF retains India's economic growth outlook for FY26 and FY27 at 6.5%

Growth projection for China in calendar year 2025 has been revised upwards by 0.1 percentage point to 4.6%

IMF chief forecasts steady world growth in 2025, continuing disinflation

With inflation moving closer to US Federal Reserve's target, and data showing a stable labor market, the Fed could afford to wait for more data before undertaking further interest rate cuts, she said

India's inclusive growth lauded by international community: K Subramanian

The world is bullish on India, the country's top economist, currently executive director of the International Monetary Fund has said, noting that India's public digital infrastructure and inclusive growth is not only being talked about but also applauded by the international community. I think the Indian economy has been growing overall very well. Post-COVID, the growth rate has consistently been seven per cent. Of course, there's been a little bit of a dip this quarter. Partly it is because of the slowdown in capital expenditures. That itself is because of some of the election cycles. Also, there's been some impact on exports. But I expect this dip to be temporary, Krishnamurthy V Subramanian, Executive Director at IMF. From the vantage point that I've been sitting on the IMF board, I have no hesitation in saying the world is bullish on India. The kind of public digital infrastructure that India has enacted, is something that almost every of my board colleagues often finds a mention

Saudi Arabia extends $3 billion loan to Pakistan for another year

Saudi Arabia has extended the USD 3 billion debt repayment period with Pakistan for another year after the cash-strapped nation could not pay the debt, the country's central bank has said. The term of the deposit was maturing on Thursday. The State Bank of Pakistan stated that Saudi Arabia had placed the USD 3 billion deposit initially for one year in 2021 and subsequently rolled over it in 2022 and 2023, after the issuance of the royal directives that reflect the continuation of the close relationship between the two brotherly countries, the Express Tribune reported. It was the first extension in a series of debt extensions, which Pakistan would need from now till the end of June next year to avoid at least USD 13 billion more repayments to Saudi Arabia, China and the United Arab Emirates. Another USD 2 billion Saudi cash deposit will be maturing by mid-June next year, which Pakistan will again not pay back and get a rollover, said the Finance Ministry sources. "The Saudi Fund for

IMF's handling of large loans to troubled nations under scrutiny

The fund's Independent Evaluation Office studied roughly 20 years of lending under the so-called Exceptional Access Policy and prepared a set of recommendations

Rising sick days are costing European businesses billions every year

As companies struggle with chronic shortages, critics blame an overly generous welfare system, where spending on health-related benefits outranks other developed nations

After Q2 GDP surprise, agencies downgrade India's FY25 growth forecast

Key metrics, such as goods and services tax (GST) collection, e-way bills, and toll revenues, increased in October