Economic outlook darkens

A big positive is the willingness of the central bank to loosen monetary policy consequent to the change in leadership last December

T T Ram Mohan  |  New Delhi 

T T Ram Mohan

The government that assumes power after the election results has its work cut out for it on the economic front. First, there is the global economic slowdown. The International Monetary Fund (IMF) estimates global economic growth at 3.3 per cent in 2019. That’s down from 4 per cent in 2017 and 3.6 per cent in 2018.

Global growth of 3.3 per cent is not a crisis. But two developments that have followed the IMF’s forecast could make things worse for the world economy. The US-China trade war has escalated. Tensions between the US and Iran have risen to a dangerous level and ...

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First Published: Thu, May 23 2019. 01:49 IST