The International Monetary Fund (IMF) on Tuesday downgraded its outlook for the world economy, warning that the imposition of import tariffs between the United States and China were taking its toll on global trade.
"There are clouds on the horizon".
The IMF had earlier estimated that escalating tit-for-tat tariffs could lower global output by more than 0.8 per cent by 2020. "Growth has proven to be less balanced than we had hoped".
IMF's forecast for Singapore's economic outlook remains steady at 2.9% for 2018, but has been revised downward by 0.2 percentage points to 2.5% for the following year.
The IMF said in an update to its World Economic Outlook it was now predicting 3.7 percent global growth in both 2018 and 2019, down from its July forecast of 3.9 percent growth for both years.
The US simultaneously threatened to add tariffs to a further $267 billion (£205 billion) of products, which saw China retaliate with 10 percent tariffs on $60 billion (£46 billion) of US imports.
Meanwhile, Lagarde also warned countries around the world of the perils of a trade or a currency war, saying they could be detrimental to global growth and hurt "innocent bystanders".
He said the dollar causes complications for emerging economies, though it's not going away anytime soon.
The IMF said the balance of risks was now tilted to the downside, with a higher likelihood that financial conditions will tighten further as interest rates normalize, hurting emerging markets further at a time when US -led demand growth will start to slow as some tax cuts expire.
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Dr Obstfeld also expects Indonesia to turn in "fairly strong" growth, despite the weakening rupiah.
The Chinese central bank will focus on the domestic economy when making adjustments to its monetary policy, Yi also said, indicating that the PBOC's decision-making will be influenced less than before by changes in the external environment such as recent interest rate hikes by the U.S. Federal Reserve.
She said this was necessary "because if services are not sufficiently covered, if digital transformation is not sufficiently covered in the current trade framework, then we are missing the point, and we are probably missing out on productivity gains that we could have".
Pakistan's new government will open talks with the International Monetary Fund for emergency financial assistance to ease a mounting balance of payments crisis, the finance ministry said on Monday. "We need to close the gap", he noted, stressing the need for policies to attract more foreign direct investment.
A strong USA economy has also hastened an increase in interest rates.
For the eurozone, slow growth means less reductions in high unemployment rates in several countries and difficulty keeping on top of high debt levels, while Japan needs growth to ward off risky deflation.
After the departure of the fund mission, the Ministry of Finance said it largely shared this assessment and was "committed to take further corrective measures to restore stability and inclusive growth".
Such growth can be supported by a multilateral approach to politics and policies, he added.