IMF Committee warns against complacency, says global economic recovery incomplete

Agencies
October 15, 2017

Washington, Oct 15: Despite the global upswing in economic activity, the IMF's steering committee has warned policymakers to guard against complacency, citing medium-term economic risks and rising geopolitical tensions.

The International Monetary and Finance Committee (IMFC), in a communique issued, said there has been a notable pickup in investment, trade, and industrial production.

"But, the (global economic) recovery is not yet complete, with inflation below target in most advanced economies, and potential growth remains weak in many countries," the communique said.

"Near-term risks are broadly balanced, but there is no room for complacency because medium-term economic risks are tilted to the downside and geopolitical tensions are rising," it further said, adding that the upturn in global activity provided a window of opportunity to tackle key policy challenges and stave off downside risks.

The committee advised the policymakers to go for "accommodative" monetary policies and fiscal policies that are "flexible and growth-friendly."

"Monetary policy should remain accommodative, where inflation is still below target and output gaps are negative, consistent with central banks’ mandates, mindful of financial stability risks, and underpinned by credible policy frameworks," it said.

"Structural reforms, well-sequenced and adapted to individual country circumstances, should aim to lift productivity, growth, and employment; promote competition and market entry, and enhance resilience," it further said.

The committee also warned against excessive volatility in exchange rates, saying it may adversely impact economic stability.

"Flexible exchange rates, where feasible, can serve as a shock absorber, but, excessive volatility or disorderly movements in exchange rates can have adverse implications for economic and financial stability," the IMF communique said

In their communique, the IMF member nations said they were committed against competitive currency devaluations.

"The IMF member countries pledged to work together to achieve a level playing field in international taxation; address tax and competition challenges raised by the digitalisation of the economy; and tackle the sources and channels of terrorism financing, corruption, and other illicit finance," the communique said.

The countries also pledged to work towards reducing excessive global imbalances in a way that supports global growth by pursuing appropriate and sustainable policies.

"The IMF members countries reinforced their commitment to achieve strong, sustainable, balanced, inclusive, and job-rich growth, and said to this end, they will use all policy tools— monetary and fiscal policies and structural reforms—both individually and collectively," the communique said.

"We will support countries dealing with the macroeconomic consequences of pandemics, cyber risks, climate change and natural disasters, energy scarcity, conflicts, migration, and refugee and other humanitarian crises," it said.

The meeting was chaired by the Governor of Bank of Mexico, Agustín Carstens. It was attended by IMF chief Christine Lagarde and Finance Minister Arun Jaitley, along with other dignitaries from across the globe.

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News Network
March 19,2024

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Mangaluru: The Mangalore International Airport (MIA) will connect to a new domestic destination with the introduction of a non-stop flight to Tiruchirappalli International Airport in Tamil Nadu. 

The non-stop service, once-a-week, will operate on Wednesday (from TIA) and Thursday (from MIA), starting April 3. Air India Express will operate the flight.

The flight is expected to help those taking up a pilgrimage to Vailankani shrine.

Sources from the AIE said that the airline carrier decided to fly non-stop between the two southern Indian cities as a flight to Jeddah, which will start from April 3, arrives from Tiruchirappalli International Airport. 

“It is a ferry or positional flight from TIA to MIA. Instead of flying empty, the management has decided to run it as a commercial flight. This will help both passengers and the airline. The airline will deploy Boeing 737-800 aircraft with a 186-seater all-economy configuration on this route. 

The same flight, after landing in MIA, will further fly to Jeddah,” a source said. 

The flight IX 1498 will depart every Thursday at 5am from MIA to TIA. The TIA-MIA flight IX 1499 departs at 12.50pm. It is a one-hour nonstop flight. The same flights will also operate nonstop between Jeddah and MIA. 

The non-stop flight IX 499 will depart MIA at 2.50pm and reach King Abdulaziz International Airport, Jeddah at 6.25pm. The IX498, will depart from Jeddah at 7.25pm and reach MIA early at 3.40am.

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News Network
March 16,2024

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New Delhi: The 2024 general election for 543 Lok Sabha seats will be held in seven phases from April 19, Chief Election Commissioner Rajeev Kumar said today, announcing the largest democratic exercise in the world. Results will be announced on June 4.

The seven phases: 
April 19
April 26
May 7
May 13
May 20
May 25
June 1

Simultaneous election for Lok Sabha and assembly will be held in four states -- Sikkim, Odisha, Arunachal Pradesh and Andhra.  

By-elections will also be held for 26 assembly seats across multiple states, including Bihar, Gujarat, Haryana, Jharkhand, Maharashtra, Rajasthan and Tamil Nadu.

Mr Kumar, announcing the dates, sent out a strong message on fake news on social media, saying political parties should ensure responsible social media behaviour -- "verify before you amplify".

"Fake news will be dealt with severely as per existent laws.. Section 79 (3)(B) of the IT Act empowers nodal officers in each state to remove unlawful content," he said.

The other strong message was on violation of model code in terms of hate speeches. "There should be issue-based campaign, no hate speeches, no speeches along caste or religious lines, no criticism of anyone's personal lives," he said.

The media must clarify when they carry political adverts, those cannot masquerade as news, he said. Individual messages regarding this would be sent to the candidates, he added.

The commission has employed 2,100 advisors to keep an eye on these issues and strong action will be taken regarding this, he said.

Voters above the age of 85 years and persons with disabilities, with 40 per cent disability can vote from home, Mr Kumar said. Around 82 lakh voter are above the age of 85, he said.

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News Network
March 27,2024

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The Enforcement Directorate has filed a money laundering case against Kerala Chief Minister Pinarayi Vijayan's daughter Veena Vijayan, her IT company and some others to probe a case of alleged illegal payments made by a private mineral firm to her and the company, official sources said Wednesday.

The agency has registered a case under the Prevention of Money Laundering Act (PMLA) and is expected to summon the people involved, the sources said.

The ED case has been booked after taking cognisance of a complaint filed by the Serious Fraud Investigation Office (SFIO), an investigative arm of the Union corporate affairs ministry, they said.

The case stems from an Income Tax Department investigation that alleged that a private company called Cochin Minerals And Rutile Ltd (CMRL), made an illegal payment of Rs 1.72 crore to Veena's company-- Exalogic Solutions-- during 2018 to 2019, even though the IT firm had not provided any service to the company.

The Karnataka High Court had last month dismissed a plea filed by Exalogic Solutions against the probe initiated by the SFIO.

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