WASHINGTON (Reuters) - The global economy is slowing more than expected and a sharp downturn could require world leaders to coordinate stimulus measures, the International Monetary Fund said on Tuesday as it cut its forecast for world economic growth this year. FILE PHOTO: The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington, U.S., April 8, 2019. REUTERS/Yuri Gripas/File Photo The global lender’s semi-annual World Economic Report pointed to the U.S.-China trade war and a potentially disorderly British exit from the European Union as key risks and warned that chances of further cuts to the outlook were high. Some major economies, including China and Germany, might need to take short-term actions, the IMF said. “This is a delicate moment for the global economy,” IMF chief economist Gita Gopinath said in a news conference to discuss the report. Governments may need to open their … [Read more...] about IMF says global economy cooling, coordinated stimulus may be needed
Global economy
US economy adds more jobs than expected in March in positive sign for global economy
The US created 196,000 new jobs in March, in good news for a global economy that has struggled of late. Total non-farm payroll employment – an important gauge of the health of the American economy – rose significantly in March from an unexpectedly low figure of 33,000 in February, data released by the US’s Bureau for Labor Statistics (BLS). Economists had been expecting a figure of 180,000. Notable gains came in health care and in professional and technical services, BLS said. Manufacturing employment showed little change from February, although fell by 6,000 in March. The unemployment rate remained at 3.8 per cent, near record-level lows. Chief market analyst at Think Markets, Naeem Aslam, said: “The US jobs number was solid and this has pushed the European markets higher. Investors are clearly more comfortable in holding the riskier assets and today’s number is not going to change anything with respect to the Fed’s stance [of holding interest … [Read more...] about US economy adds more jobs than expected in March in positive sign for global economy
The effects of the UK’s political uncertainty on the global economy
With a political uncertainty hanging over the country, as politicians endlessly disagree about Brexit deals as well as other problems affecting the UK’s economy, the number of people trading using a trading platform has been fluctuating substantially over the last three years. However, this doesn’t just apply to the UK, but is also a problem that is having a profound impact on the global economy. National political instability With political parties working against one another and not coming to an agreement on Brexit and further delaying the leaving date, these indecisions are not only problematic for the nation, but have direct effects on the global economy. Despite the fact that the economic fallout of leaving the EU will have the biggest impact on the UK, countries in the EU, as well as others around the globe (especially trading partners) are understandably waiting to see what the outcome brings. The UK isn’t alone with their political uncertainties, as other … [Read more...] about The effects of the UK’s political uncertainty on the global economy
Global trade shrinks in final quarter of 2018 as trade wars drag on global economy
Global trade shrank at the end of 2018 as trade tensions and increased economic uncertainty took their toll, the World Trade Organisation (WTO) revealed today. The WTO also said that these problems will stick around, predicting in its annual forecast that world merchandise trade is likely to grow by 2.6 per cent in 2019, much lower than a previous prediction of 3.7 per cent. Global trade shrank by 0.3 percent in the final quarter of 2018, the WTO said, due to new tariffs and retaliatory measures, weaker economic growth, volatility in financial markets and tighter monetary conditions in developed countries. The organisation now estimates that global trade grew by three per cent in 2018, down from its September forecast of 3.9 per cent. The news came amid fears of a slowdown in the global economy. Consensus estimates have world GDP growth slowing from 2.9 per cent in 2018 to 2.6 per cent in both 2019 and 2020. Trade only grew slightly faster than output in 2018, and this relative … [Read more...] about Global trade shrinks in final quarter of 2018 as trade wars drag on global economy
Russian stocks expected to fall at opening on global economy woes
MOSCOW, Mar 28 (PRIME) -- Russian stocks are likely to shrink at opening on Thursday as concerns over condition of the international economy undermine investor willingness to take risks, analysts said. “We expect the MOEX Russia Index to open with a moderate decrease within 0.2–0.4% around 2,480. The levels of 2,470 and 2,460 will act as the closest support, while the levels of 2,500 and 2,510 will become the resistance,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said. The background for the Russian stock market is negative as the U.S. stock index futures fell by 0.3%, the Brent oil price lost 0.3%, Japan’s Nikkei225 contracted by 1.5%, and Hong Kong’s Hang Seng fell by 0.1%, Manzhos said. Mikhail Poddubsky, chief analyst at Promsvyazbank, said that risk appetite remains relatively low among global players. One of the key topics at international markets is the debt market. Yield on U.S. 10-year treasuries fell to 2.35%, the … [Read more...] about Russian stocks expected to fall at opening on global economy woes