Economic growth to fall short of target: IMF

Cites political tension in the run up to election as a reason

FE Online Report | Published: June 09, 2018 19:31:54 | Updated: June 10, 2018 10:18:45

The International Monetary Fund (IMF) has forecasted a slightly lower per cent of economic growth than the government target for the upcoming fiscal year 2018-19 (FY19)

The IMF projected a 7.0 per cent GDP growth in FY19, which is 0.80 per cent lower than the target of 7.80 per cent.

The global monetary organisation has also predicted an increased political tension in the run up to the general election in December 2018, which will result in a negative impact on economic growth.

“Underlying tensions remain and the risks from political unrest could increase. The potential threat of terrorism continues to be a source of concern,” said the 2018 Article IV consultation mission in its report said Saturday.

The IMF has suggested to reform the tax system, increase investments, boost female labour force in employment sector, ensure financial inclusion, strengthen anti-money laundering and counter-terrorist financing framework, and strict banking and financial sector monitoring.

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