Global economy projected to grow by about 3 percent this year

Mohamed Nass - Dubai - The global economy is projected to grow by about 3 percent this year, but the pace has continued to weaken since April,according to the International Monetary and Financial Committee, IMFC.

''Growth is projected to pick up next year, but the outlook is highly uncertain and subject to elevated downside risks. These include trade tensions, policy uncertainty, and geopolitical risks, against a backdrop of limited policy space, high and rising debt levels, and heightened financial vulnerabilities. Other longstanding challenges also persist,'' said the IMFC in a communiqué following the Fortieth meeting today.

''We will employ all appropriate policy tools, individually and collectively, to mitigate risks, enhance resilience, and shore up growth to benefit all. In line with central banks’ mandates, monetary policy should ensure that inflation remains on track toward, or stabilises around targets, and that inflation expectations remain anchored. Central bank decisions need to remain well-communicated and data-dependent. We will continue to monitor and, as necessary, tackle financial vulnerabilities and risks to financial stability, including with macroprudential policies,'' the IMFC added.

''We will advance structural reforms to lift growth, employment, and productivity; enhance resilience; and promote inclusion. We reaffirm our commitment to strong governance, including by tackling corruption. We will advance policies that foster innovation and more competitive and flexible markets, and strive to address challenges from demographic shifts. We will provide opportunities for all people to contribute to economic activity and share its benefits, and effectively assist those bearing the cost of ongoing transitions.'' ''We will cooperate to reduce excessive global imbalances through macroeconomic and structural policies that support sustainable global growth.''