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Inflation in <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> is expected to come down from 6.8 percent in the current fiscal year ending March 31 to 5 percent the next fiscal, and then drop further to 4 percent in 2024, the <keyword id="6366068" type="General" weightage="50" keywordseo="international-monetary-fund" source="Orion">International Monetary Fund</keyword> (<keyword id="6355408" type="General" weightage="100" keywordseo="imf" source="Orion">IMF</keyword>) said on Tuesday. “Inflation in India as in other countries is expected to come down from 6.8 percent in 2022 to 5 percent in 2023 and then 4 percent coming towards the target in 2024,” <keyword id="15228271" type="General" weightage="50" keywordseo="daniel-leigh" source="Orion">Daniel Leigh</keyword>, <keyword id="16303768" type="General" weightage="20" keywordseo="division-chief" source="Orion">Division Chief,</keyword> <keyword id="976312" type="General" weightage="50" keywordseo="research-department" source="Orion">Research Department</keyword> of the IMF told reporters here. “That partly reflects the central bank's actions,” he added, According to the <keyword id="188983" type="General" weightage="20" keywordseo="world-economic-outlook" source="Orion">World Economic Outlook</keyword> update released by the IMF on Tuesday, about 84 percent of countries are expected to have lower headline (consumer price index) inflation in 2023 than in 2022. Global inflation is set to fall from 8.8 percent in 2022 (annual average) to 6.6 percent in 2023 and 4.3 percent in 2024 -- above pre-pandemic (2017–19) levels of about 3.5 percent, it said. The projected disinflation partly reflects declining international fuel and non-fuel commodity prices due to weaker global demand. It also reflects the cooling effects of monetary policy tightening on underlying (core) inflation, which globally is expected to decline from 6.9 percent in the fourth quarter of 2022 (year over year) to 4.5 percent by the fourth quarter of 2023, the IMF said. “Still, disinflation will take time: by 2024, projected annual average headline and core inflation will, respectively, still be above pre-pandemic levels in 82 percent and 86 percent of economies,” it said. In advanced economies, annual average inflation is projected to decline from 7.3 percent in 2022 to 4.6 percent in 2023 and 2.6 percent in 2024 -- above target in several cases. In emerging markets and developing economies, projected annual inflation declines from 9.9 percent in 2022 to 8.1 percent in 2023 and 5.5 percent in 2024, above the 4.9 percent pre-pandemic (2017–19) average, the IMF said. In low-income developing countries, inflation is projected to moderate from 14.2 percent in 2022 to 8.6 percent in 2024 -- still high, but close to the pre-pandemic average, it further said. In a blog post, <keyword id="12346475" type="General" weightage="20" keywordseo="pierre-olivier-gourinchas" source="Orion">Pierre-Olivier Gourinchas</keyword>, Chief Economist and Director, Research Department of the IMF, wrote that global inflation is expected to decline this year but even by 2024, projected average annual headline and core inflation will still be above pre-pandemic levels in more than 80 percent of countries. “The inflation news is encouraging, but the battle is far from won. Monetary policy has started to bite, with a slowdown in new home construction in many countries. Yet, inflation-adjusted interest rates remain low or even negative in the euro area and other economies, and there is significant uncertainty about both the speed and effectiveness of monetary tightening in many countries,” Gourinchas said.

Inflation in India expected to come down to 5 pc in 2023 and 4 pc in 2024: IMF

<ul class="summary-list"><li>Chinese officials must take "forceful action" to address the problems in its property sector, an IMF official said.</li><li>The group's chief economist said Beijing must enact robust policy to ensure developer risks don't spread. </li></ul>The chief economist of the International Monetary Fund cautioned that Beijing authorities must enact robust policy to address the issues plaguing China's property sector. In a press conference Tuesday in Marrakesh, Morocco, Pierre-Olivier Gourinchas also warned that failure to act could lead to problems extend beyond troubled real estate developers."Clearly what this is calling for is forceful action by the authorities," Gourinchas said, according to <a href="https://www.bloomberg.com/news/articles/2023-10-10/china-needs-forceful-action-on-its-real-estate-woes-imf-says" target="_blank" rel="noopener">Bloomberg</a>. Two of China's largest developers, Evergrande and Country Garden, have made headlines this summer, each dealing with massive indebtedness.Bond investors in Evergrande this week warned that the company — which filed for Chapter 15 bankruptcy protection in August — <a href="https://markets.businessinsider.com/news/bonds/china-evergrande-property-crash-collapse-investors-beijing-real-estate-markets-2023-10?_gl=1*1ed5fez*_ga*MjA5NTAyMzYyOS4xNjYyNDcwMDc5*_ga_E21CV80ZCZ*MTY5NjkzOTEwNy4xMzUwLjEuMTY5NjkzOTExMS41Ni4wLjA.">could face an "uncontrolled collapse"</a> that would be disastrous for the entire property sector. To Gourinchas, Beijing should "help restructure struggling property developers, to make sure there isn't any increase in financial instability, to make sure it remains localized in the real estate market and doesn't spread into the broader financial system, and help restore confidence in households."The comments came as the IMF lowered its economic outlook for the country, while reports emerged that China is weighing raising its budget deficit for 2023 amid talk of new stimulus measures.The IMF slashed its growth outlook on China for this year from 5.2% to 5%, and for 2024 from 4.5% to 4.2%, with economists pointing to the property sector as a primary obstacle.

China's property sector is facing massive risks and authorities must meet it with 'forceful action', IMF says

<ul class="summary-list"><li>The US's $33 trillion debt pile is reflecting "unsustainable" fiscal policy, the IMF said.</li><li>The government has already racked up a $1.5 trillion deficit in the first 11 months of 2023.</li></ul>The US debt situation is looking increasingly precarious, and corporate defaults are up as interest rates stay high, according to the International Monetary Fund.The US's fiscal situation is the "most worrying" among all world countries, the IMF's research director Pierre-Olivier Gourinchas said in a <a href="https://www.imf.org/en/News/Articles/2023/10/10/tr101023-transcript-of-october-2023-world-economic-outlook-press-briefing" target="_blank" rel="noopener">press briefing</a> on Tuesday.That's largely due to the rapid pace of government spending, with the US already having racked up a $1.5 trillion deficit in the first 11 months of the fiscal year, according to a recent Brookings Institution estimate.And in an interview with Bloomberg on Wednesday, IMF Fiscal Affairs director Vitor Gaspar also said US deficits are elevated and look to be persistent."Under unchanged policies, debt dynamics in the US are very unfavorable," he said, later adding that the "the perpetuation of current policies entails an unsustainable fiscal path."The total federal debt <a href="https://markets.businessinsider.com/news/bonds/treasury-yields-jump-us-debt-hits-record-33-trillion-2023-9">blew past $33 trillion for the first time ever</a> this year. That amounts to around 121% of 2022's GDP, but that is projected to blow up in the coming years, with the added risk that the <a href="https://markets.businessinsider.com/news/bonds/us-debt-crisis-gdp-ratio-unsustainable-default-treasury-bond-crash-2023-10?_gl=1*mufg2d*_ga*MjMxMzA1Mzg2LjE2NTY0NDQxNTU.*_ga_E21CV80ZCZ*MTY5NzAyOTU5NS43MzIuMS4xNjk3MDMxNzk0LjYwLjAuMA..">US could default on its debt in as soon as 20 years</a>, Penn Wharton School researchers warned.That future spells trouble in the backdrop of rising interest rates, with rates now at their highest level since 2001 as the Fed keeps a hawkish eye on inflation. That could raise the <a href="https://markets.businessinsider.com/news/bonds/us-debt-costs-interest-rates-economy-record-2025-goldman-sachs-2023-10">borrowing costs on US debt to a new record by 2025</a>, Goldman Sachs strategists said.Higher rates are also bound to spark some distress for borrowers, with over $2 trillion of corporate debt set to mature in the US alone in 2024."Making debt more expensive is an intended consequence of tightening monetary policy to contain inflation. The risk, however, is that borrowers might already be in precarious positions financially, and the higher interest rates could amplify these fragilities, leading to a surge of defaults," the IMF warned in a <a href="https://www.imf.org/en/Blogs/Articles/2023/10/10/higher-for-longer-interest-rate-environment-is-squeezing-more-borrowers?utm_medium=email&amp;utm_source=govdelivery" target="_blank" rel="noopener">blog</a> on Tuesday.Corporate debt defaults have already been rising globally, notching their highest monthly increase in August, according to S&amp;P Global data.<div type="image" title="Corporate debt defaults just notched their highest monthly tally since 2009 in August, S&amp;P Global data shows." height="1475" width="1689" msid="104350326" hostid="261" sizebytes="54190"></div>Meanwhile, defaults on US high-yield bonds are expected to notch 4.5%-5% this year, according to an estimate from Fitch Ratings, more than six times the 0.7% default rate recorded among all high-yield bond issuers in 2021.<a href="https://markets.businessinsider.com/news/bonds/us-corporate-debt-recession-outlook-defaults-bonds-bankruptcies-rates-fed-2023-10#:~:text=The%20US%20could%20see%20defaults,US%20economy%20into%20a%20recession.">Peak defaults and bankruptcies</a> in the US could come as soon around the first quarter of 2024, Charles Schwab estimated, as higher borrowing costs break weaker firms financially.

The US debt situation looks 'unsustainable,' and corporate defaults are rising, IMF warns

<ul class="summary-list"><li>The IMF expects the world economy to grow 2.9% in 2023 — which is better than its October forecast of 2.7%.</li><li>Growth is expected to be supported by strong labor markets and household consumption, and China's reopening.</li></ul>The world economy may actually not be as bad as it seems, the <a href="https://www.imf.org/-/media/Files/Publications/WEO/2023/Update/January/English/text.ashx" target="_blank" rel="noopener">International Monetary Fund</a> said Monday, as it upped its global growth forecast to 2.9% in 2023. While that's still slower than the pace of growth in 2022 at 3.4%, it's an improvement from the IMF's <a href="https://www.imf.org/en/Blogs/Articles/2022/11/13/slowing-global-economic-growth-is-increasingly-evident-high-frequency-data-show" target="_blank" rel="noopener">October forecast</a> of a 2.7% rise. Strong labor markets, increased household consumption and business investment, and China's economic reopening from the COVID-19 pandemic, all contribute to the cheery outlook. "We're well away from any kind of global recession marker," Pierre-Olivier Gourinchas, the IMF's chief economist, told <a href="https://www.bloomberg.com/news/articles/2023-01-31/imf-raises-world-economic-outlook-for-the-first-time-in-a-year" target="_blank" rel="noopener">Bloomberg</a> on Tuesday."This time around, the global economic outlook hasn't worsened. That's good news, but not enough. The road back to a full recovery, with sustainable growth, stable prices, and progress for all, is only starting," Gourinchas also wrote in a <a href="https://www.imf.org/en/Blogs/Articles/2023/01/30/global-economy-to-slow-further-amid-signs-of-resilience-and-china-re-opening" target="_blank" rel="noopener">Monday blogpost.</a>The IMF highlighted India and China as bright spots in the global economy. The two countries account for half of global growth in 2023, Gourinchas added in his blogpost. The US and Euro-zone will collectively account for just one-tenth of growth.And it also seemed surprisingly upbeat about the Russian economy — it expects the economy to grow, even amid sweeping sanctions against Moscow over the Ukraine war and a <a href="https://ec.europa.eu/commission/presscorner/detail/en/QANDA_22_7469" target="_blank" rel="noopener">$60 a barrel price cap</a> for its crude oil exports — suggesting the restrictions are not that effective.The IMF expects Russia's economy to expand 0.3% in 2023 and 2.1% in 2024 — a stark reversal from an expected 2.2% contraction in 2022. The IMF had predicted in October that <a href="https://www.imf.org/external/np/g20/pdf/2022/111322.pdf" target="_blank" rel="noopener">Russia's economy</a> would contract by 3.4% in 2022."At the current oil price cap level of the Group of Seven, Russian crude oil export volumes are not expected to be significantly affected, with Russian trade continuing to be redirected from sanctioning to non-sanctioning countries," according to the IMF.The fund told <a href="https://www.reuters.com/markets/emerging-markets-growth-slowdown-bottomed-out-2022-risks-remain-imf-2023-01-31/" target="_blank" rel="noopener">Reuters</a> that Russia's economy was supported by a "fairly high" export revenue in 2022 and robust fiscal stimulus in part from military spending.However, the country is still expected to post a a decline in growth in the medium term due to the Ukraine war, Petya Koeva-Brooks, deputy director of the IMF's research department, told the news agency.

The IMF thinks we may actually skirt a recession. It is also surprisingly upbeat about Russia's economy.

<ul class="summary-list"><li>The IMF forecast Russia's economy to contract 6% this year — an improvement from its April forecast.</li><li>Russia's crude-oil and energy exports have been holding up better than expected, said IMF.</li></ul>Russia's economy is holding up better than expected amid sweeping sanctions over its invasion of Ukraine, according to the <a href="https://www.imf.org/en/Publications/WEO/Issues/2022/07/26/world-economic-outlook-update-july-2022#">International Monetary Fund's World Economic Outlook</a> report issued on Tuesday.The IMF slashed growth forecasts for almost every country, but upgraded Russia's economic forecast — with the country's economy still contracting, but by 6% — an improvement from the <a href="https://markets.businessinsider.com/news/stocks/imf-economy-outlook-forecast-global-russia-ukraine-war-projection-commodities-2022-4">IMF's April forecast</a> of an 8.5% contraction.That's because Russia's crude-oil and non-energy exports have been "holding up better than expected," the IMF wrote in its report. "In addition, domestic demand is also showing some resilience thanks to containment of the effect of the sanctions on the domestic financial sector and a <a href="https://www.businessinsider.com/explainer-russia-economy-inflation-slowed-unemployment-steady-sanctions-ukraine-war-2022-6">lower-than-anticipated weakening of the labor market,"</a> added the IMF."That's still a fairly sizable recession in Russia in 2022," IMF chief economist Pierre-Olivier Gourinchas told the <a href="https://www.france24.com/en/live-news/20220726-russia-doing-better-than-expected-despite-sanctions-imf">AFP.</a> And "there is no rebound" for Russia with the country's economy expected to contract by 3.5% in 2023 — down from IMF's April forecast of a 2.3% contraction, as sanctions gnaw their way through the economy, Gourinchas added to the news agency.Overall, the IMF warned of a gloomy economic outlook with global growth likely to hit 3.2% this year — down from 6.1% in 2021 due to higher-than-expected inflation, a slowdown in China, and fallout from the war in Ukraine.Europe's growth is weighed down by the possibility of a <a href="https://www.businessinsider.com/germany-recession-russia-natural-gas-supply-cut-energy-inflation-ifo-2022-7">Russian natural-gas supply halt</a> as countries in the region are heavily dependent on the fuel import. GDP growth for the euro-zone is expected to slow to 2.6% this year, down from 5.4% in 2021.The US economy is also slowing sharply, with growth expected to reach 2.3% this year, down from 5.7% in 2021."The world may soon be teetering on the edge of a global recession, only two years after the last one," said <a href="https://mediacenter.imf.org/NEWS/imf-world-economic-outlook-highlights/s/16566edc-9b3a-4de0-9ed2-642beaba93ee">Gourinchas.</a>The IMF typically publishes the <a href="https://www.imf.org/external/pubs/ft/weo/data/assump.htm#:~:text=Data%20and%20projections%20for%20196,based%20on%20consistent%20global%20assumptions.">World Economic Outlook</a> forecasts twice a year. They are based on data and projections from 196 economies.

Despite sweeping sanctions, Russia's economic outlook has improved since April &mdash; but it's gotten worse for almost every other country

The <keyword id="6366068" type="General" weightage="50" keywordseo="international-monetary-fund" source="Orion">International Monetary Fund</keyword> (<keyword id="6355408" type="General" weightage="100" keywordseo="imf" source="Orion">IMF</keyword>) has projected the <keyword id="11929899" type="General" weightage="20" keywordseo="global-economy" source="Orion">global economy</keyword> to grow by 3.2 per cent in 2022 and 2.7 per cent in 2023, with a downward 0.2-percentage-point revision for 2023 from the July forecast, according to the latest <keyword id="188983" type="General" weightage="20" keywordseo="world-economic-outlook" source="Orion">World Economic Outlook</keyword> (WEO) report. The global economy is experiencing "a number of turbulent challenges", as inflation higher than seen in several decades, tightening financial conditions in most regions, <keyword id="2461729" type="General" weightage="20" keywordseo="Russia-Ukraine-conflict" source="Orion">Russia-Ukraine conflict</keyword>, and the lingering Covid-19 pandemic all weigh heavily on the outlook, Xinhua news agency reported, citing the report. "This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the Covid-19 pandemic and reflects significant slowdowns for the largest economies," the report noted. A contraction in real gross domestic product (GDP) lasting for at least two consecutive quarters (which some economists refer to as a "technical recession") is seen at some point during 2022-2023 in about 43 percent of economies, amounting to more than one-third of world GDP, according to the report. Global inflation is forecast to rise from 4.7 per cent in 2021 to 8.8 per cent in 2022 but to decline to 6.5 per cent in 2023 and to 4.1 per cent by 2024, the report showed. Noting that risks to the outlook remain unusually large and to the downside, the latest WEO report said that monetary policy could miscalculate the right stance to reduce inflation, more energy and food price shocks might cause inflation to persist for longer, and global tightening in financing conditions could trigger widespread emerging market debt distress. The IMF warned that geopolitical fragmentation could impede trade and capital flows, further hindering climate policy cooperation. "The balance of risks is tilted firmly to the downside, with about a 25 per cent chance of one-year-ahead global growth falling below 2.0 per cent -- in the 10th percentile of global growth outturns since 1970," the report noted. The IMF argued that front-loaded and aggressive monetary tightening is "critical" to avoid inflation de-anchoring. "Misjudging yet again the stubborn persistence of inflation could prove much more detrimental to future macroeconomic stability by gravely undermining the hard-won credibility of central banks," said IMF chief economist Pierre-Olivier Gourinchas. Noting that fiscal policy's priority is the protection of vulnerable groups through targeted near-term support to alleviate the burden of the cost- of-living crisis felt across the globe, the IMF said the overall stance of fiscal policy should remain "sufficiently tight" to keep monetary policy on target. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/this-agritech-is-mobilizing-wet-waste-of-cities-as-compost-thats-saving-crops-soil-and-farmers-in-rural-areas/articleshow/94796735.cms">This agritech is mobilizing wet waste of cities as compost that’s saving crops, soil and farmers in rural areas</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/electronics-mart-india-ipo-heres-how-you-can-check-the-allotment-status/articleshow/94796701.cms">Electronics Mart India IPO: Here’s how you can check the allotment status</a>

IMF downgrades 2023 global growth forecast to 2.7%

The <keyword id="6366068" type="General" weightage="50" keywordseo="international-monetary-fund" source="Orion">International Monetary Fund</keyword> (<keyword id="6355408" type="General" weightage="100" keywordseo="imf" source="Orion">IMF</keyword>) on Tuesday slashed its annual growth projection for <keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword> by 0.8 percentage points to 7.4 per cent for 2022 and forecast "increasingly gloomy developments" for the global economy such as high inflation, downturn in <keyword id="1334" type="General" weightage="50" keywordseo="china" source="Orion">China</keyword> because of <keyword id="8764262" type="General" weightage="80" keywordseo="covid" source="Orion">Covid</keyword>. and spillovers from the war in <keyword id="6355101" type="General" weightage="50" keywordseo="ukraine" source="Orion">Ukraine</keyword>. The fund cut its 2023 projection for India also by 0.8 percentage points to 6.1 per cent. These revised forecasts are relative to those in the fund's April world outlook report. The 2022 cut for India "reflects mainly less favorable external conditions and more rapid policy tightening", said the fund's World Economic Outlook Update, titled "Gloomy and More Uncertain". The World Bank has also slashed its projections for India to 7.5 per cent from 8 per cent for 2022-23, blaming it on a surge in Covid-19 cases, related mobility restrictions and the war in Ukraine. The IMF forecast for India was called "rational" by an official who spoke on background. "Given the gloomy global outlook and inflation contagion, IMF's growth forecast for India moderating it down by 0.8 percentage point is rational. Indian economy seems to be far more resilient at this point in time as others like US and China are talking a bigger hit with the forecast cut down to 1.4 and 1.1 percentage points respectively," the official said. "Further, IMF continues to project India's growth rate in 2022 as the fastest growing major economy with 7.4 per cent and only other country around this rate is Saudi Arabia with 7.6 per cent. Nearest to this ASEAN-5 at 5.3 per cent while China is way down to 3.3 per cent." The IMF projected a rather grim outlook for the world at large, saying it was facing "increasingly gloomy developments in 2022 as risks (that it had warned in April) began to materialise". And they are: higher inflation worldwide, specially in the US and major European economies, triggering a sharp tightening in global financial conditions; a sharper-than anticipated slowdown in China, reflecting Covid-19 outbreaks and lockdowns; and further negative cross-border effects from the war in Ukraine. The IMF slashed its global growth forecast to 3.2 per cent for 2022 and 2.9 per cent in 2023, down from April estimates of 3.6 per cent for both years. "The outlook has darkened significantly since April," IMF Chief Economist Pierre-Olivier Gourinchas said in a statement. "The world may soon be teetering on the edge of a global recession, only two years after the last one." The report acknowledged that though it had warned of inflation, it had not expected it to go so high. At 9.1 per cent for both, inflation has been the highest for the US and the UK in 40 years and at 9.8 per cent in the euro area, it's the highest since the inception of the unified monetary system; and, the report said, emerging and developing economies are also expected to be experiencing inflation at the rate of 9.8 per cent. With wages not keeping pace in both advanced and emerging markets and developing economies, the report shows that household purchasing power will be eroded. In China, ongoing Covid-19 outbreaks and mobility restrictions have "disrupted economic activity widely and severely", the fund said, and slowdown in China "has global consequences". It added: "Lockdowns added to global supply chain disruptions and the decline in domestic spending are reducing demand for goods and services from China's trade partners." The continuing war in Ukraine is causing "widespread hardship", the report said, detailing the disruptive and debilitating effect it's having on life -- 9 million Ukrainians fleeing the country, for instance -- and economy with existing sanctions on Russia and those coming on its energy export to <keyword id="28249" type="General" weightage="50" keywordseo="europe" source="Orion">Europe</keyword>.

IMF slashes India's growth forecast by 0.8 percentage points to 7.4 per cent for 2022

<ul class="summary-list"><li>US stock futures slipped Wednesday after <keyword id="12328794" type="UNKNOWN" weightage="60" keywordseo="netflix-earnings" source="Orion">Netflix earnings</keyword> disappointed and as bond yield gains unnerved investors.</li><li>Netflix said its subscriber numbers fell for the first time in a decade in the first quarter, sending the stock tumbling.</li></ul>US stock futures slipped Wednesday as investors digested downbeat earnings from Netflix and a sharp rise in <keyword id="11945447" type="UNKNOWN" weightage="60" keywordseo="bond-yields" source="Orion">bond yields</keyword>.<a href="https://markets.businessinsider.com/futures/s&amp;p-500-futures">S&amp;P 500 futures</a> were down 0.06% after paring steeper earlier losses. The benchmark US stock index jumped 1.61% Tuesday as companies' earnings updates by and large beat estimates.<a href="https://markets.businessinsider.com/futures/dow-futures">Dow Jones futures</a> were roughly flat Wednesday, while futures for the tech-heavy <a href="https://markets.businessinsider.com/futures/nasdaq-100-futures">Nasdaq 100</a> index dropped 0.16%.<a href="https://markets.businessinsider.com/stocks/nflx-stock">Netflix</a> fell 27.58% in premarket trading after it said it had <a href="https://www.businessinsider.com/netflix-loses-subscribers-first-time-decade-earnings-2022-4">lost subscribers</a> for the first time in a decade.The streaming media giant also forecast its subscriber count would drop by around 2 million in the first quarter, with stiff competition and rising living costs weighing on growth. <a href="https://markets.businessinsider.com/stocks/dis-stock">Disney</a> — which has a major streaming service — fell 4.49% premarket as investors fretted about the health of the industry.Also weighing on investors' minds was a sharp rise in government bond yields, driven by expectations that the Federal Reserve will hike interest rates aggressively this year to tame inflation.So-call real yields on 10-year government bonds — the amount that an investor will receive when taking inflation into account — briefly turned positive Tuesday for the first time since 2020. Analysts said positive real yields could weigh considerably on stocks, given that investors can finally make money on bonds again.The yield on the <a href="https://markets.businessinsider.com/rates/u-s--rates-10-years">10-year US Treasury note</a> was down 4.3 basis points Wednesday at 2.898%, hovering around its highest level since late 2018.Also on investors' radar was the International Monetary Fund's downgrade of its global growth predictions Tuesday. The Fund now thinks the world economy will grow 3.6% this year, compared with a previous 4.4% forecast."Global economic prospects have been severely set back, largely because of Russia's invasion of Ukraine," Pierre-Olivier Gourinchas, the IMF's director of research <a href="https://blogs.imf.org/2022/04/19/war-dims-global-economic-outlook-as-inflation-accelerates/">said</a>.Europe's continent-wide <a href="https://markets.businessinsider.com/index/stoxx_europe_600">Stoxx 600</a> stock index rose 0.75% in morning trading after falling Tuesday. Overnight in Asia, China's <a href="https://markets.businessinsider.com/index/csi-300">CSI 300</a> lost 1.55%, but Tokyo's <a href="https://markets.businessinsider.com/index/nikkei_225">Nikkei 225</a> moved up 0.86%.Elsewhere in <keyword id="11893875" type="UNKNOWN" weightage="100" keywordseo="markets" source="Orion">markets</keyword>, oil prices rose as the market continued to be rocked by uncertainties about the global economy and Russia's war in Ukraine.<a href="https://markets.businessinsider.com/commodities/oil-price">Brent crude</a> was up 0.75% at $108.05 a barrel, while <a href="https://markets.businessinsider.com/commodities/oil-price?type=wti">WTI crude</a> was 0.81% higher at $103.39 a barrel.Earnings season continued in the US, with <a href="https://markets.businessinsider.com/stocks/tsla-stock">Tesla</a> and <a href="https://markets.businessinsider.com/stocks/pg-stock">Procter &amp; Gamble</a> due to report Wednesday. Analysts said relatively strong earnings so far had supported stocks in recent days."Although still early in the season, there are contrasting factors at play, with an estimated 80% of companies so far exceeding expectations," Richard Hunter, head of markets at trading platform Interactive Investor, said."Meanwhile, the general consensus remains rooted to the likelihood of the Federal Reserve ratcheting up the pressure on inflation with higher than expected interest rate rises," he said."The country's ability to withstand such increases without derailing the economic recovery remains central to concerns."Read more: <a href="https://www.businessinsider.com/how-to-protect-portfolio-stagflation-inflation-recession-stock-market-cazenove-2022-4" target="_blank" rel="noopener noreferrer">Stagflation risk is soaring, according to 3 top strategists at a $950 billion asset manager. They explain why some stocks are still attractive — and share 4 ways to prepare a portfolio for the looming combination of high inflation and sluggish growth.</a>

US stock futures slip as Netflix tumbles 27%, and rising bond yields unnerve investors

<keyword id="6355408" type="General" weightage="80" keywordseo="imf" source="Orion">IMF</keyword>'s Chief Economist <keyword id="154034" type="General" weightage="20" keywordseo="Gita-Gopinath" source="Orion">Gita Gopinath</keyword> will leave her job in January next year and return to the prestigious <keyword id="53675" type="General" weightage="80" keywordseo="harvard" source="Orion">Harvard</keyword> University, according to the global financial institution. The 49-year-old prominent Indian-American economist had joined the International Monetary Fund (IMF) as the Chief Economist in January 2019. She was the John Zwaanstra Professor of International Studies and Economics at Harvard University when she joined the Washington-based global lender. IMF Managing Director <keyword id="2200950" type="General" weightage="20" keywordseo="kristalina-georgieva" source="Orion">Kristalina Georgieva</keyword> on Tuesday announced that the search for Gopinath's successor would begin shortly. "Gita's contribution to the Fund and our membership has been truly remarkable - quite simply, her impact on the IMF's work has been tremendous," Georgieva said. Mysuru-born Gopinath is the first-ever woman Chief Economist of the IMF. Harvard University had extended her leave of absence on an exceptional basis by one year, which has allowed her to serve as Chief Economist at the IMF for three years. "She made history as the first female Chief Economist of the Fund and we benefited immensely from her sharp intellect and deep knowledge of international finance and macroeconomics as we navigate through the worst economic crisis since the Great Depression. "Gita also won the respect and admiration of colleagues in the Research Department across the Fund, and throughout the membership for leading analytically rigorous work and policy-relevant projects with high impact and influence," Georgieva said. The IMF said that as part of her many significant initiatives, Gopinath co-authored the "Pandemic Paper" on how to end the COVID-19 pandemic that set globally endorsed targets for vaccinating the world. This work led to the creation of the Multilateral Task Force made up of the leadership of the IMF, the World Bank, the World Trade Organisation and the World Health Organisation to help end the pandemic and the establishment of a working group with vaccine manufacturers to identify trade barriers, supply bottlenecks, and accelerate delivery of vaccines to low- and lower-middle income countries, the IMF said in a statement. Among her other key accomplishments, Gopinath helped set up a Climate Change team inside the IMF to analyse, among other things, optimal climate mitigation policies. "I would like to express my personal appreciation to Gita for her impressive contributions, her always wise counsel, her devotion for the mission of the Research Department and the Fund more broadly, as well as her widely recognised inclusive and accessible approach to colleagues and staff," Georgieva added. Born in December 1971 to Malayalee parents, Gopinath had her schooling in Kolkata and graduated from the Lady Shri Ram College of Commerce in Delhi. She did Masters from the Delhi School of Economics as well as from the University of Washington. Gopinath did her Ph.D in economics from Princeton University in 2001 and she was guided by <keyword id="147334" type="General" weightage="20" keywordseo="kenneth-rogoff" source="Orion">Kenneth Rogoff</keyword>, Ben Bernanke and Pierre-Olivier Gourinchas. She joined the University of Chicago in 2001 as an Assistant Professor before moving to Harvard in 2005. She became a tenured Professor there in 2010. She is the third woman in the history of Harvard to be a tenured professor at its esteemed economics department and the first Indian since the Nobel laureate Amartya Sen to hold that position. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/ril-jubilant-foodworks-bajaj-auto-and-other-stocks-to-watch-out-for-on-october-20/slidelist/87148904.cms">RIL, Jubilant Foodworks, Bajaj Auto and other stocks to watch out for on October 20</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/researchers-develop-ai-based-algorithm-that-can-detect-unseen-signs-of-heart-failure/articleshow/87136581.cms">Researchers develop AI-based algorithm that can detect unseen signs of heart failure</a>

IMF chief economist Gita Gopinath to resign and return to Harvard University

REUTERS/Steve ParsonsBritain's Prime Minister Theresa May visits the Wellbeing Centre which provides support to people recovering from mental health needs, in Aldershot, Hampshire, January 9, 2017.UK Prime Minister Theresa May surprised the world April 18 by reversing course on an earlier promise and calling for early general elections in the UK parliament.The political bombshell has added a new layer of uncertainty to a fraught Brexit process. While May and other leavers pitch their referendum victory as one of sovereignty over Europe, the truth is increasingly clear: Britain's global role is much diminished without the cover of its EU partnership.Really, it's just another small island with an outsized finance sector. The pound, battered since the Brexit referendum last summer, rebounded on the news. But according to a <a href="http://www.frbsf.org/economic-research/publications/economic-letter/2017/april/brexit-whither-the-pound/">new report published by the Federal Reserve Bank of San Francisco</a>, the pound's devaluation is mostly here to stay because it reflects a deeper perception of Britain's loss of economic prowess."The pound depreciated sharply immediately following the Brexit vote. This reflects market beliefs that Brexit would lead to a persistent decline in the real value of the pound," wrote Pierre-Olivier Gourinchas, director of the Clausen Center for International Business and Policy at the University of California, Berkeley and Galina Hale, a research advisor at the San Francisco Fed.Federal Reserve Bank of San FranciscoSterling's decline may have some short run benefits, the authors noted."A weaker pound gives a boost to both exporting and import-competing industries. One expected immediate effect of Brexit will be to stimulate the manufacturing sector at the expense of the financial industry. Moreover, the depreciation of the pound provides a one-time valuation gain for foreign currency-denominated assets held by U.K. residents," they said.They cited one estimate showing the UK's net international investment position had improved by roughly 25% of GDP, "a significant windfall."Still, the long-run trend may not be as rosy. "Despite a possible boost to manufacturing exports and some valuation gains, the depreciation of the pound since the Brexit vote must reflect expectations of slower growth for the U.K. economy in the next few years and beyond," Gourinchas and Hale wrote. "While some groups may gain from Brexit, the message from the foreign exchange and asset markets is clear: The overall size of the economy will eventually shrink relative to what it could have been if the United Kingdom had voted to stay in the EU."And while British stocks rallied in the months after the vote, that improvement needs to be adjusted for the currency's drop. "Given that the stock market captures investors' long-run expectations, one might be surprised that the broad U.K. stock market index rebounded strongly after the initial drop in the wake of the vote. However, the FTSE lost significant ground relative to the U.S. Standard &amp; Poor's 500 and German DAX when measured in US dollar terms."Federal Reserve Bank of San FranciscoFXTM Research Analyst Lukman Otunuga is similarly cautious about sterling's immediate rebound following May's call for a vote: "While short-term bulls may reign as a result of this fresh development, longer-term bears could exploit the potential political uncertainty to drag Sterling lower," he wrote in a note to clients. "A very strong likelihood remains that sterling sensitivity will intensify moving forward, with a vote in parliament on Wednesday to decide whether or not the election will take place acting as the first test."Britain's FTSE 100 stock index had its worst day since June 2016, <a href="http://www.businessinsider.com/ftse-100-and-european-stock-movements-on-tuesday-april-18-2017-4">as the surging pound wreaked havoc with equity investors.</a> <h3>NOW WATCH: <a href="http://www.businessinsider.com/workouts-burn-most-calories-hour-efficient-2017-3">The 5 workouts that burn the most calories in an hour</a></h3> Please enable Javascript to watch this video

You Searched For "pierre olivier gourinchas" and got 11 results

Inflation in India expected to come down to 5 pc in 2023 and 4 pc in 2024: IMF

PTI

China's property sector is facing massive risks and authorities must meet it with 'forceful action', IMF says

Phil Rosen

The US debt situation looks 'unsustainable,' and corporate defaults are rising, IMF warns

Jennifer Sor

The IMF thinks we may actually skirt a recession. It is also surprisingly upbeat about Russia's economy.

Huileng Tan

The IMF thinks we may actually skirt a recession. It is also surprisingly upbeat about Russia's economy.

Huileng Tan

Despite sweeping sanctions, Russia's economic outlook has improved since April but it's gotten worse for almost every other country

Huileng Tan

IMF downgrades 2023 global growth forecast to 2.7%

IANS

IMF slashes India's growth forecast by 0.8 percentage points to 7.4 per cent for 2022

IANS

US stock futures slip as Netflix tumbles 27%, and rising bond yields unnerve investors

Harry Robertson

IMF chief economist Gita Gopinath to resign and return to Harvard University

PTI

The weaker British pound is here to stay

Pedro Nicolaci da Costa

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