Connect with us

World news

IMF Cuts Global Economic Growth Over Trump’s Tariff War

Published

on

IMF Cuts Global Economic Growth Over Trump’s Tariff War

An upswing in economic risks due to rising trade tensions and debt levels has prompted the International Monetary Fund (IMF) to cut its forecast for world growth for this year and next.

With trade growth set to slow sharply amid a trade war between the United States and China, the IMF cut its outlook for global GDP by two-tenths to 3.7 percent for 2018 and 2019, according to the quarterly World Economic Outlook Report issued Monday.

The revised estimates include a worsening outlook for developing economies this year and next compared to the July report, as well as downgrades for the United States (US) and China in 2019.

The IMF warns that risks highlighted in previous reports “have become more pronounced or have partially materialised” in the real world.

The dominant US economy has been shielded from the ill effects so far due to the stimulus provided through tax cuts and spending policies, but that will wear off by 2020.

Still, the trade disputes sparked by President Donald Trump that have led to tit-for-tat exchanges of tariffs among major trading partners are affecting China, other Asian economies and more vulnerable countries like Argentina and Turkey, along with Brazil.

“Trade policy reflects politics and politics remains unsettled in several countries, posing further risks,” IMF Chief Economist, Maurice Obstfeld, told a press briefing in Bali, where the fund kicks off its annual meetings this week.

“Despite the possibility of less political space in some countries… making consensus on sound policies often harder to reach, there won’t be a better time than now for further action.”

Growth estimates for the euro area and Britain also was revised down.

The report warned that growth “may have peaked in some major economies.”

“Downside risks to global growth have risen in the past six months and the potential for upside surprises has receded,” the IMF said.

Rising trade tensions are a key challenge to the world economy as “protectionist rhetoric increasingly turned into action.”

That includes President Donald Trump’s imposition of tariffs on $250 billion in Chinese goods, as well as on aluminum, steel and other products worldwide.

The IMF warned the uncertainty caused by the trade disputes “could lead firms to postpone or forgo capital spending and hence slow down growth in investment and demand.”

And if it continues, the “escalation of trade tensions to an intensity that carries systemic risk is a distinct possibility without policy cooperation.”

Global trade is projected to expand by 4.2 percent this year, six tenths less than expected in July and nearly a full point lower than the forecast in April. For next year, trade is seen growing just four percent, a half point less than the prior forecast.

When the world’s two biggest economies — the US and China — are “at odds”, that is going to create “a situation where everyone is going to suffer”, Obstfeld said.

“Growth is now much more uneven” than six months ago, he told reporters.

But the outgoing Chief Economist — who retires from the Fund later this year — added that it was a “mixed picture” with some Latin American and African nations getting growth forecast upgrades.

Credit: NAN

Loading

Headline

US Does Not Want To See Middle East Crisis ‘Escalate’ – White House

Published

on

The United States does not want to see an escalation of the crisis in the Middle East, a top White House official said Sunday after Israel repelled a massive missile and drone attack from Iran.

“We don’t want to see this escalate,” White House National Security Council spokesman John Kirby said on NBC’s “Meet the Press”. “We’re not looking for a wider war with Iran.”

Israel was on high alert Sunday after Iran’s unprecedented attack sparked fears of a broader conflict.

Iran launched its first-ever direct assault on Israeli territory late Saturday in retaliation for a deadly strike by Israeli on Tehran’s consulate in Damascus on April 1.

Iran’s retaliation marked a major escalation of the long-running covert war between the regional foes.

US President Joe Biden has reaffirmed Washington’s “ironclad” support for Israel, while appearing to guide its staunch ally away from a military response.

News outlet Axios said the president had told Netanyahu he would oppose an Israeli counterattack against Iran and that the prime minister should “take the win”.

Kirby added in the interview that the United States is “staying vigilant” to any Iranian threats to American troops.

“We made it very clear to all parties, including Iran, what we would do … and also how seriously we would take any potential threats to our personnel,” Kirby said.

Iran launched more than 300 drones and missiles towards Israel late Saturday, injuring 12 people, the Israeli army said.

But almost all were intercepted before they reached Israeli territory, the army said, with help from the United States, Jordan, Britain and other allies.

AFP

Loading

Continue Reading

Headline

Pope Warns Against ‘Spiral Of Violence’ After Iran Attack

Published

on

…Iranian President Raisi  Warns Israel Against ‘Reckless’ Retaliation

…Flights Cancelled Across Iran Amid Security Concerns

Pope Francis on Sunday made a “pressing appeal” against a “spiral of violence” after Iran’s unprecedented missile and drone attack on Israel, warning of a potential regional conflagration.

“I make a pressing appeal for an end to any action which could fuel a spiral of violence that risks dragging the Middle East into an even greater conflict,” the Argentinian pontiff declared following his traditional Sunday prayer in Saint Peter’s Square at the Vatican.

“I am praying and following with concern, but also pain, the news that has come in recent hours about the worsening situation in Israel due to Iran’s intervention,” the pope told worshippers.

“No one should threaten the existence of others. All countries must, however, side with peace and help Israelis and Palestinians to live in two states, side by side and in security,” he said.

“That is their right,” Francis insisted as he once again repeated earlier calls for a ceasefire in Gaza and “negotiation.”

The pontiff furthermore demanded the world “help the population facing a humanitarian crisis” in Gaza and urged the “immediate release of the hostages kidnapped months ago” by Hamas, setting in train the latest chapter of violence in the region.

Meanwhile, several Iranian airports, including Tehran’s Imam Khomeini International Airport, have cancelled flights until Monday.

This development followed the crisis between Iran and Israel.

The airport’s executive said all flights from Tehran’s Imam Khomeini International Airport have been cancelled until 6 am (0230 GMT) following an announcement by Iran’s Civil Aviation Organisation.

According to Iran’s Airports and Air Navigation Company, domestic flights from Tehran’s Mehrabad Airport and airports in Shiraz, Isfahan, Bushehr, Kerman, Ilam, and Sanandaj have also been cancelled until Monday morning, as the country’s western airspace remains off limits to flights.

Major airlines across the Middle East have announced the cancellation of some of their flights while having to reroute others, though Israel reopened its airspace as of 7:30 am local time on Sunday.

Beirut airport also reopened this morning and flights in and out of the Lebanese capital have reportedly resumed.

Tehran has warned it will strike again with greater force if Israel or the US retaliate for the Iranian strike on Israel by more than 300 drones and missiles on Saturday night.

Loading

Continue Reading

Headline

War: Iran Launches Hundreds Of Missiles, Drones In First Direct Attack On Israel

Published

on

..As Iran Hijacked Israel’s Ship 

…Israel Warns Iran Will Suffer ‘Consequences’ Of Escalation

…We’ll Continue To Support Israel’s Security, UK Reacts To Iran’s Attack

…US Intercepted All 300 Drones, Missiles Fired At Israel By Iran, Biden Reacts

Iran’s mission to the United Nations has released a statement on the attack against Israel.

Recall that Iran launched over 100 missile-laden drones towards Israel on Saturday.

Iran’s mission, which defended the attack, said it was in response to Israel’s aggression against its diplomatic premises.

“Iran’s military action was in response to the Zionist regime’s aggression against our diplomatic premises in Damascus,” Iran’s mission to the UN has said in a post on X.

“The matter can be deemed concluded. However, should the Israeli regime make another mistake, Iran’s response will be considerably more severe.

“The post goes on to say that the conflict is between Iran and Israel – and the US “must stay away”.

It pointed to Article 51 of the UN Charter pertaining to legitimate defence.

“Should the Israeli regime make another mistake, Iran’s response will be more severe,” it added.

“It is a conflict between Iran and the rogue Israeli regime, from which the U.S. MUST STAY AWAY.

Meanwhile, the Israeli Prime minister, Benjamin Netanyahu, has warned that whoever harms his country will in turn be harmed.


The prime minister said this in a statement on Saturday evening in reaction to Iran’s drone attacks towards Israel:

However, Netanyahu warned, “Our defensive systems are deployed; we are ready for any scenario, both defensively and offensively,” he said.

“The State of Israel is strong. The IDF is strong. The public is strong.

“We appreciate the US standing alongside Israel, as well as the support of Britain, France and many other countries.


“We have determined a clear principle: Whoever harms us, we will harm them. We will defend ourselves against any threat and will do so level-headedly and with determination.

“Citizens of Israel, I know that you also are level-headed. I call on you to follow the directives of IDF Home Front Command.

“Together we will stand and with God’s help – together we will overcome all of our enemies.

In the same vein, the British prime minister, Rishi Sunak has reacted to Iran’s attack on Isreal.

The UK said it is alongside its allies urgently working to stabilise the situation, adding that it does not want to see more bloodshed.

The PM, however, reiterated the United Kingdom’s continued support for Israel’s security.


On Saturday, Iran said it has fired multiple drone attacks against Israel in retaliation to the attack on its embassy in Syria and the killing of its top officials by the Israeli military.

Reacting to the attack on X, the Prime minister said, “I condemn in the strongest terms the Iranian regime’s reckless attack against Israel.

“Iran has once again demonstrated that it is intent on sowing chaos in its own backyard.


“The UK will continue to stand up for Israel’s security and that of all our regional partners, including Jordan and Iraq.

“Alongside our allies, we are urgently working to stabilise the situation and prevent further escalation. No one wants to see more bloodshed.

Also, US President, Joe Biden has announced that nearly all the Iranian drones and missiles fired towards Israel by Iran have been intercepted.

Biden added that he will convene a meeting of G7 leaders on Sunday over the attack launched against Israel by Iran.

Biden condemned the attack, saying in a statement from the White House that Iran was aided by its proxy forces in Yemen, Syria and Iraq.

“At my direction, to support the defence of Israel, the U.S. military moved aircraft and ballistic missile defence destroyers to the region over the course of the past week.

“Thanks to these deployments and the extraordinary skill of our servicemembers, we helped Israel take down nearly all of the incoming drones and missiles.

Biden says that he reaffirms America’s “ironclad” commitment to Israel in his call with Benjamin Netanyahu.

“I told him that Israel demonstrated a remarkable capacity to defend against and defeat even unprecedented attacks – sending a clear message to its foes that they cannot effectively threaten the security of Israel.”

 

Loading

Continue Reading

Recent Posts




JOIN US ON FACEBOOK

Trending