The International Monetary Fund cut its forecast for the US economy's annual growth in 2022 and 2023, warning that surging inflation poses "systemic risks" to the country and the global economy.
The gross domestic product of the world's largest economy is now projected to grow 2.3 per cent this year, compared with a 2.9 per cent forecast last month, the Washington-based lender said after concluding its consultation with the US on Tuesday.
The US economy's growth is also expected to slow to 1 per cent in 2023, down from a previous forecast of 1.7 per cent, according to IMF estimates.
Consumer price inflation (CPI) rose to 9.1 per cent year-on-year in June, the highest since 1981, up from 8.6 per cent in May. However, core inflation decelerated slightly to 5.9 per cent in June, from 6 per cent in May, data released on Wednesday showed.
The IMF's executive directors said that a broad-based surge in inflation is "posing systemic risks to both the United States and the global economy".
"Policy priority must be to expeditiously slow price growth without precipitating a recession."
A strong US hiring report for June released last week highlighted the sharp contrast between the healthy labour market and the rest of the economy. Inflation has soared to 40-year highs, consumers are increasingly gloomy, home sales and manufacturing are weakening and fears of a recession are mounting.
The IMF expects unemployment in the US to rise to 3.7 per cent this year, compared with its earlier forecast of 3.2 per cent.
The fund estimates the jobless rate will increase to 4.6 per cent in 2023, before exceeding 5 per cent in 2024 and 2025.
"Avoiding a recession in the United States is becoming increasingly challenging and ... the Russian invasion of Ukraine, the lingering Covid-19 pandemic and supply side constraints create additional challenges," the IMF said.
Avoiding a recession in the United States is becoming increasingly challenging and ... the Russian invasion of Ukraine, the lingering COVID-19 pandemic, and supply side constraints create additional challenges
IMF
Calibrating a response to inflation comes with "high stakes" and misjudging the policy mix — in either direction — will result in "sizable costs" at home and negative spillovers to the global economy, the IMF's executive directors said in the report.
The US Federal Reserve has moved aggressively to tackle the hottest inflation in 40 years, raising interest rates by 75 basis points last month — the single-biggest increase since 1994. The central bank will meet again this month on July 26-27 and is expected to raise rates again.
These policy actions "will slow the growth in consumer spending to around zero by early next year, easing the strain on supply chains", Andrew Hodge, economist at the IMF Western Hemisphere Department, said in a separate report.
"Higher mortgage rates will reduce housing prices, which have grown strongly during the pandemic. Finally, slowing demand will increase unemployment to around 5 per cent by the end of 2023, which should decrease wages," Mr Hodge said.
In their recommendations, the IMF executive directors called for passing the rest of US President Joe Biden's social and climate reform agenda that will be crucial to "foster the supply side of the economy and contribute to reduce inflation".
They called on the US authorities to continue making the case for a stronger social safety net and for changes to tax, spending, and immigration policies that would foster labour force participation, investment, and innovation.
Directors also recommended "rolling back the trade restrictions and tariff increases that were introduced over the past five years". The Trump administration had imposed tariffs on Chinese goods, steel, aluminium and other products ― a measure that has been retained by the Biden administration.
The IMF directors also called on the US authorities to work actively with trading partners to strengthen the rules-based multilateral trading system centred around the World Trade Organisation.
heading
Iran has sent five planeloads of food to Qatar, which is suffering shortages amid a regional blockade.
A number of nations, including Iran's major rival Saudi Arabia, last week cut ties with Qatar, accusing it of funding terrorism, charges it denies.
The land border with Saudi Arabia, through which 40% of Qatar's food comes, has been closed.
Meanwhile, mediators Kuwait said that Qatar was ready to listen to the "qualms" of its neighbours.
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Most sought after workplace benefits in the UAE
- Flexible work arrangements
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Huddersfield Town permanent signings:
- Steve Mounie (striker): signed from Montpellier for £11 million
- Tom Ince (winger): signed from Derby County for £7.7m
- Aaron Mooy (midfielder): signed from Manchester City for £7.7m
- Laurent Depoitre (striker): signed from Porto for £3.4m
- Scott Malone (defender): signed from Fulham for £3.3m
- Zanka (defender): signed from Copenhagen for £2.3m
- Elias Kachunga (winger): signed for Ingolstadt for £1.1m
- Danny WIlliams (midfielder): signed from Reading on a free transfer
Sheikh Zayed's poem
When it is unveiled at Abu Dhabi Art, the Standing Tall exhibition will appear as an interplay of poetry and art. The 100 scarves are 100 fragments surrounding five, figurative, female sculptures, and both sculptures and scarves are hand-embroidered by a group of refugee women artisans, who used the Palestinian cross-stitch embroidery art of tatreez. Fragments of Sheikh Zayed’s poem Your Love is Ruling My Heart, written in Arabic as a love poem to his nation, are embroidered onto both the sculptures and the scarves. Here is the English translation.
Your love is ruling over my heart
Your love is ruling over my heart, even a mountain can’t bear all of it
Woe for my heart of such a love, if it befell it and made it its home
You came on me like a gleaming sun, you are the cure for my soul of its sickness
Be lenient on me, oh tender one, and have mercy on who because of you is in ruins
You are like the Ajeed Al-reem [leader of the gazelle herd] for my country, the source of all of its knowledge
You waddle even when you stand still, with feet white like the blooming of the dates of the palm
Oh, who wishes to deprive me of sleep, the night has ended and I still have not seen you
You are the cure for my sickness and my support, you dried my throat up let me go and damp it
Help me, oh children of mine, for in his love my life will pass me by.
Dubai works towards better air quality by 2021
Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.
The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.
These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.
“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.
“We’re in a good position except for the cases that are out of our hands, such as sandstorms.
“Sandstorms are our main concern because the UAE is just a receiver.
“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”
Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.
There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.
“There are 25 stations in total,” Mr Al Daraji said.
“We added new technology and equipment used for the first time for the detection of heavy metals.
“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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Director: David Blue Garcia
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Series info
Test series schedule 1st Test, Abu Dhabi: Sri Lanka won by 21 runs; 2nd Test, Dubai: Play starts at 2pm, Friday-Tuesday
ODI series schedule 1st ODI, Dubai: October 13; 2nd ODI, Abu Dhabi: October 16; 3rd ODI, Abu Dhabi: October 18; 4th ODI, Sharjah: October 20; 5th ODI, Sharjah: October 23
T20 series schedule 1st T20, Abu Dhabi: October 26; 2nd T20, Abu Dhabi: October 27; 3rd T20, Lahore: October 29
Tickets Available at www.q-tickets.com
Stat Fourteen Fourteen of the past 15 Test matches in the UAE have been decided on the final day. Both of the previous two Tests at Dubai International Stadium have been settled in the last session. Pakistan won with less than an hour to go against West Indies last year. Against England in 2015, there were just three balls left.
Key battle - Azhar Ali v Rangana Herath Herath may not quite be as flash as Muttiah Muralitharan, his former spin-twin who ended his career by taking his 800th wicket with his final delivery in Tests. He still has a decent sense of an ending, though. He won the Abu Dhabi match for his side with 11 wickets, the last of which was his 400th in Tests. It was not the first time he has owned Pakistan, either. A quarter of all his Test victims have been Pakistani. If Pakistan are going to avoid a first ever series defeat in the UAE, Azhar, their senior batsman, needs to stand up and show the way to blunt Herath.
RESULT
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Ferran Torres 67'
Atlanta 4
Josip Llicic 3' (P), 43' (P), 71', 82'
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