Menu

IMF

wb meetings

Upcoming WB-IMF Annual Meeting To Focus Upon “Eradicating Poverty”

, , , , ,

World Bank-IMF annual meetings is scheduled to take place from 9 to 15 October this year. The focus of the meeting will be on ‘what it will take to eradicate poverty on a sustainable planet’.

It will also examine the new strategy required to address interconnected global concerns including the solutions that worked on the ground in developing countries and plans to boost jobs, digital infrastructure, and climate action.

Ajay Banga, president of the World Bank, is one of the individuals scheduled to participate in the discussions. According to Ajay Banga, “The Bank’s twin goals have to change to be the elimination of poverty, but on a liveable planet, because of the interconnected nature of our crisis,” posted World Bank on X.

Banga also emphasised the need for a change in priorities towards eradicating poverty while maintaining a liveable world in his remarks on the relevance of these sessions. He highlighted that a comprehensive strategy that takes into account climate action, pandemic response, and fragility addressing is required due to the interconnected nature of global problems.

The World Bank invites participants in these debates from all over the world. The meetings will be streamed live online, giving participants the opportunity to participate in English, Arabic, French, and Spanish and planned to be broadcasted live from Marrakech, Morocco. 

household

Centre To Release First Advance Economic Growth Projections For FY23 Today

, ,

World Bank has increased its earlier prediction of 6.5 per cent for India’s gross domestic product (GDP) growth for the current fiscal year to 6.9 per cent

The first preliminary estimates of economic growth for 2022–2023 will be released by the National Statistical Office on Friday night, three weeks before the general budget presentation in Parliament on 1 February.

The central bank revised its projection for gross domestic product (GDP) growth downward in April 2022, from 7.8 to 7.2 per cent, then again in September of last year, to seven per cent.

Real GDP growth for 2022–2023 was predicted by the RBI to be 6.8 per cent, with the third and fourth quarter coming in at 4.4 per cent and 4.2 per cent respectively.

In December 2022, it reduced the 2022–2023 growth forecast for the third time.

From 13.5 per cent in the first three months of the fiscal year, GDP growth dropped to 6.3 per cent in the second.

The International Monetary Fund (IMF) also lowered its estimate of India’s growth for FY23 from 7.4 per cent to 6.8 per cent from its July 2022 projection.

However, the World Bank has increased its earlier prediction of 6.5 per cent for India’s GDP growth for the current fiscal year to 6.9 per cent.

The Asian Development Bank has maintained its seven per cent growth prediction for India for the years 2022–2033.

Due to ongoing geopolitical unrest and tightening financial circumstances worldwide, the Reserve Bank of India last month reduced the country’s GDP growth prediction from seven per cent  to 6.8 per cent for the current fiscal year.

Un-ESw2K_400x400

Global Economic Outlook Turning ‘Gloomier’, Huge Risks Ahead: IMF

, , , , , , ,

In the last month, the global lender reduced its global growth forecast for 2023 from 2.9 per cent to 2.7 per cent. The recent purchasing manager indices measuring manufacturing and services activities indicated a weakness in most Group of 20 major economies, said the International Monetary Fund

The International Monetary Fund (IMF) said that the global economic outlook is even gloomier than what was projected in the last month, on 13 November 2022. Also, it cited that a steady downfall in purchasing manager surveys has been witnessed in recent months.

Led by a persistently high and broad-based inflation, the fund blamed the darker outlook on strengthening monetary policy, weak growth momentum in China and ongoing supply disruptions and food insecurity which is caused by Russia-Ukraine crisis.

In the last month, the global lender reduced its global growth forecast for 2023 from 2.9 per cent to 2.7 per cent. The IMF in a blog for the purpose of summit of G20 leaders in Indonesia, said that recent high-frequency indicators has confirmed on the outlook being gloomier, specifically in Europe.

The recent purchasing manager indices measuring manufacturing and services activities indicated a weakness in most Group of 20 major economies, said the IMF. Also, the economic activity contracted whereas inflation remained high, it added.

“Readings for a growing share of G20 countries have fallen from expansionary territory earlier this year to levels that signal contraction,” the IMF said

Indicating the current policy environment to be “unusually uncertain, it said, “The challenges that the global economy is facing are immense and weakening economic indicators point to further challenges ahead. However, with careful policy action and joint multilateral efforts, the world can move toward stronger and more inclusive growth.

The constant energy crisis in Europe would crucially harm growth and increase the inflation. Whereas prolonged high inflation could lead to hike in policy interest, it being larger-than-anticipated and further tightening of global financial conditions.

That in turn is “increasing risks of a sovereign debt crisis for vulnerable economies,” the IMF said. Also, growth across the globe would also be impacted due to increasing severe weather events, it said.

Rbi cfo

India’s Forex Drops to $529.99 Bn After Decline In Gold Reserves

, , , ,

The primary reason is decline in India’s gold’s reserves. This comes after the biggest jump of 2022 which ended on October 28 last week, when the reserves swelled to $531.08 Bn

India’s forex reserves have dropped $1.09 Bn during the week ended November 4 to $529.99 Bn. The primary reason is decline in India’s gold’s reserves. This comes after the biggest jump of 2022 which ended on October 28 last week, when the reserves swelled to $531.08 Bn.

In October 2021, the country’s forex had reached an all-time high of $645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused by global developments. Foreign currency assets (FCA), a major component of the overall reserves, decreased by $120 Mn to $470.727 Bn during the week according to  RBI. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves.

RBI also said the gold reserves dropped by $705 million to $37.057 billion. India’s reserve position with the International Monetary Fund also dipped by $27 million to $4.82 billion in the reporting week, while the special drawing rights were down by $235 million to $17.39 billion. Further, the country’s reserve position with the International Monetary Fund also dipped by $27 million to $4.82 billion in the reporting week. The forex reserves have been falling due to the capital outflow amid recession concerns and the RBI has spent a significant amount to shore up the rupee. The domestic currency has declined about 9 per cent during the current calendar year.

kWDj1eg_400x400

India’s GDP Growth May Surpass IMF’s Projection For Next Year: V Anantha Nageswaran, CEA

, , , , , , , ,

Enhanced capital formation will lead to high growth. Recently, the IMF had projected the real growth for this year at 6.8 per cent and 6.1 per cent for the upcoming year for India. There may be a 0.5 to 0.8 per cent addition to the 6 per cent baseline numbers

The chief economic adviser (CEA) of India, V Anantha Nageswaran is hopeful about India clocking better economic growth than what the International Monetary Fund had projected for the next fiscal.

He said that enhanced capital formation will lead to high growth. Recently, the IMF had projected the real growth for this year at 6.8 per cent and 6.1 per cent for the upcoming year for India. 

Nageswaran said that the growth rates in the upcoming years may slightly be on higher side. They will be better than what these numbers are, as there exists a possibility of India’s capital formation cycle perming better post one decade of retrenchment.

Expectedly, India’s public digital infrastructure has crossed an inflection point. Also, It will contribute to the formalisation of the economy leading to higher growth, he said.

In his opinion there may be a 0.5 to 0.8 per cent addition to the 6 per cent baseline numbers.  Also, he said that normally the fiscal policy and monetary policy are synchronised and counterbalance each other. 

Commenting on high debt-to-GDP ratio, he said that sustainability is not focus a concern and it may go down with asset monetisation. By using asset monetisation proceeds, India can bring down its debt which will help in improving the credit rating. According to him, it can be the best fiscal stimulus that India can provide.

QKpaSEtM_400x400

Debt Restructuring Talks Initiated With IMF, India, China: President Wickremesinghe

, , , , , , , ,

It will be tough for them to pay back debt, still they have to find ways to reduce their debt burden. The president is hopeful if the talks are carried forward in a systematic way, it would solve their problems. During August end Sri Lanka reached a staff-level agreement with the IMF for a 2.9 billion dollars rescue package for 4 years

The president of Sri Lanka, Ranil Wickremesinghe said that Sri Lanka has initiated debt restructuring talks with the International Monetary Fund(IMF), India and China, on 16 October. He believes that if the discussions move forward in a “systematic way”, the country would overcome the worst economic crisis ever in its history.

Wickremesinghe said that talks have already been initiated with private creditors on debt restructuring while addressing a gathering in the Siyambalanduwa district.

He said that it will be tough for them to pay back debt, still they have to find ways to reduce their debt burden. They have been through a situation where they were unable to meet interest payments.

The president is hopeful if the talks are carried forward in a systematic way, it would solve their problems. 

Wickremesinghe said that he spoke to the Chinese finance minister. And meanwhile Sri Lanka’s finance minister Shehan Semasinghe initiated talks with India on debt restructuring in Washington, on 15 October.

He said that the funds received from the World Bank, the Asian Development Bank, the US and the EU were being utilised towards island’s medicine and fertiliser imports. 

During August end Sri Lanka reached a staff-level agreement with the IMF for a 2.9 billion dollars rescue package for 4 years. Its completion ensures Sri Lanka’s creditors assurances on debt restructuring. 

In May, the appointment of international legal and debt advisors for debt restructuring was made by the government. It was made right after Sri Lanka declared its international debt default, for the first time in history. Sri Lanka is almost bankrupt and stopped repaying its 51 billion dollar foreign debt of which it must repay 28 billion dollar by 2027.

economy

India May Become Third Biggest Economy After US And China By FY28: Reports

, , , , , , , , , , , ,

It may overtake Germany and Japan, two years earlier than initially expected. Other nations may grow marginally or even go into recession. Even India’s growth too witnessed a few knocks however economy is expected to expand at decent pace. In comparison with other currencies, rupee depreciated a bit less against the dollar

As per the International Monetary Fund (IMF) World Economic Outlook database, India may become the world’s third-biggest economy after the US and China by FY28. It may overtake Germany and Japan, two years earlier than initially expected.

It also projects, India surpassing UK became the fifth biggest economy in the world during January-March quarter this year. If a quick sneak-peak is taken at the India’s progress, is one of the most developed economies even being hit hard by pandemic and war-triggered inflation.

Other nations may grow marginally or even go into recession. Even India’s growth too witnessed a few knocks however economy is expected to expand at decent pace. In comparison with other currencies, rupee depreciated a bit less against the dollar.

Also, if we consider India absolute performance, it has sound macro fundamentals. Its Inflation rate high, although not skyrocketing. And the current account deficit is also high however expected to moderate.

The foreign exchange reserves of India down however still touching 550 billion dollar. Fiscal situation in India is also comfortable. The banks have grown strong and the credit cycle is pacing up. Financial Year 2023 will be the first complete year when India will go past the UK.

nirmala sitharaman- CFO- Getty Images

India Performs Well In A World Of Uncertainties: FM Sitharaman

, , , , , ,

The GDP growth of 13.5 per cent in Q1 lead India cross the pre-pandemic level by 3.8 per cent. Since April 2022, India completely withdrew from lockdowns. The central government is working on a consolidation path and has budgeted to bring down the GFD-GDP ratio to 6.4 per cent from 6.7 per cent in 2021-22 and 9.2 per cent in 2020-21

Union Finance Minister Nirmala Sitharaman said that in a world of uncertainties, India is among the few standout performers, on 14 October. She said this a day after the International Monetary Fund (IMF) quoted India as a bright spot, despite facing an imminent recession in a global economy. 

“In a world of uncertainties, India is one of the very few standout performers,” the minister said, while addressing the International Monetary Finance Committee during the ongoing annual meeting of the World Bank and the IMF. 

Sitharaman quoted that according to India’s National Statistical Organisation (NSO), the GDP growth of India for Q1FY22-23 stands at 13.5 per cent on a year-on-year basis. This came out as the highest among the large economies. 

She said that even though India started the monetary normalisation process quite early, we could achieve this. The interest rate hiked from May and the surplus liquidity currently is being absorbed with the Standing Deposit Facility which was instituted in April 2022.

The central government is working to consolidate and has budgeted to bring down the GFD-GDP ratio to 6.4 per cent from 6.7 per cent in 2021-22 and 9.2 per cent in 2020-21, the minister noted.

Further, to empower the foundations for medium-term growth, the government expenditure is now moving towards capital instead of revenue, she added. 

According to Sitharaman, the GDP growth of 13.5 per cent in Q1 lead India cross the pre-pandemic level by 3.8 per cent. Since April 2022, India completely withdrew from lockdowns. 

Talking on investment, the minister said, gross fixed capital formation (GFCF) growth went up to 20 per cent in Q1. This was driven majorly by governments and public sector undertakings (PSUs) in the transport sector. Housing, construction, steel, pharma and IT in the private sector also contributed in the same

Proximate indicators such as cement, steel, IIP capital goods, non-gold and non-oil imports, and capacity utilisation, have also reflected certain growth.

“Double digits are growth can be witnessed both in exports and imports however, as compared to exports, import growth is more robust. It reflects the comeback of the domestic economy and the divergent slowdown in the global economy,” Sitharaman said.

nirmala sitharaman

FM Sitharaman Urges For Effective Tax Reporting Regime On Crypto Assets

, , , , , , , , , , , , ,

Highlighting the need to boost the private sector participation, on increasing the sustainable and digital infrastructure investments, she also emphasised on mobilising finance at sub-national level for inclusive and quality infrastructure

Finance Minister Nirmala Sitharaman urged for an effective tax reporting regime and information exchange between jurisdictions on 13 October. This to combat offshore tax evasions for crypto assets.

On the side-lines of the annual meetings of the International Monetary Fund (IMF) and the World Bank, Sitharaman critically noted a number of critical issues, including infrastructure, investments and international taxation. She participated in the G20 Finance Ministers and Central Bank Governors meeting too.

Highlighting the need to boost the private sector participation, on increasing the sustainable and digital infrastructure investments, she also emphasised on mobilising finance at sub-national level for inclusive and quality infrastructure.

Discussions were held, on the progress made on international taxation agenda in this year, during last session of the ongoing G20 meeting.

Addressing on the two-pillar solution, Sitharaman urged for participative engagement of all jurisdictions in negotiations and prioritise capacity building. She further added that international tax rules must be simple and easy to understand, administrable and should generate meaningful revenue in the developing countries.

According to multiple tweets by the Ministry of Finance, the minister also urged for an effective tax reporting regime and information exchange between jurisdictions in order to combat offshore tax evasion for crypto assets.

nirmala sitharaman

Sitharaman To Attend IMF-World Bank Annual Meetings

, , ,

She will take part in bilateral meetings with several countries like Japan, South Korea, Saudi Arabia, Australia, Bhutan, New Zealand, Egypt, Germany, Mauritius, UAE, Iran and Netherlands

Union Finance Minister Nirmala Sitharaman will travel to the United States on October 11 to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank. 

The Ministry of Finance on Monday in a statement said that Sitharaman will attend the G20 finance ministers and central bank governor (FMCBG) meetings.

She will take part in bilateral meetings with several countries like Japan, South Korea, Saudi Arabia, Australia, Bhutan, New Zealand, Egypt, Germany, Mauritius, UAE, Iran and Netherlands. 

The minister will also hold one-on-one meetings with leaders and heads of OECD, European Commission and UNDP, the ministry added. 

In a high-level meeting, the Finance Minister will meet the US Treasury Secretary  Janet Yellen and David Malpass, President of the World Bank separately to discuss issues of mutual interest.

The Union Finance Minister will also attend roundtable meetings with USIBC and USISPF on themes to ‘Strengthen Investment and Innovation in India-US Corridor’ and “Investing in India’s Digital Revolution”. 

These meetings with leading business leaders and investors are aimed at highlighting India’s policy priorities and deliberating on measures to facilitate foreign investment by showcasing India’s attractiveness as an investment destination, it said. 

Load More