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IMF warns of low growth in the world
2015/04/08
The International Monetary Fund said in a study, the potential global growth had a big hit after the financial crisis of 2007-2009 and is likely to remain low for years, indicating that interest rates will remain low for a short period.
The index measures the potential growth the speed at which the economy can grow over time without being inhibited by inflationary pressures, has begun to slow down in rich economies before the financial crisis because of the increasing population of elderly persons and technological innovation.
But declines in direct investment and employment growth has reduced the potential annual growth in those States to 1.3% between 2008 and 2014, down half a percentage point higher than before the crisis, according to a study of the Fund.
The study, which is part of the global economy forecast issued by the Fund twice a year, as part of discussions on ways to promote growth when policy makers from around the world to Washington next week to attend the spring meetings of the IMF and the World Bank.
The Fund said that "over the next five years will increase annual growth of developed economies to 1.6% but remains below the growth rates before the crisis making it difficult to reduce the public debt from high levels."
In emerging markets decline annual growth likely to 6.5% from 2008 to 2014, down nearly 2 percentage points higher than before the crisis, and more are expected to come down to 5.2% over the next five years with a high population of elderly people affected by capital growth with structural constraints and slowing productivity. Finished/25 t
The Fund urged rich economies to support demand and investment, including increased funding for research and development and infrastructure.
He said the emerging economies should strengthen infrastructure spending and deregulation and improvement of the quality of education.
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2015/04/08
The International Monetary Fund said in a study, the potential global growth had a big hit after the financial crisis of 2007-2009 and is likely to remain low for years, indicating that interest rates will remain low for a short period.
The index measures the potential growth the speed at which the economy can grow over time without being inhibited by inflationary pressures, has begun to slow down in rich economies before the financial crisis because of the increasing population of elderly persons and technological innovation.
But declines in direct investment and employment growth has reduced the potential annual growth in those States to 1.3% between 2008 and 2014, down half a percentage point higher than before the crisis, according to a study of the Fund.
The study, which is part of the global economy forecast issued by the Fund twice a year, as part of discussions on ways to promote growth when policy makers from around the world to Washington next week to attend the spring meetings of the IMF and the World Bank.
The Fund said that "over the next five years will increase annual growth of developed economies to 1.6% but remains below the growth rates before the crisis making it difficult to reduce the public debt from high levels."
In emerging markets decline annual growth likely to 6.5% from 2008 to 2014, down nearly 2 percentage points higher than before the crisis, and more are expected to come down to 5.2% over the next five years with a high population of elderly people affected by capital growth with structural constraints and slowing productivity. Finished/25 t
The Fund urged rich economies to support demand and investment, including increased funding for research and development and infrastructure.
He said the emerging economies should strengthen infrastructure spending and deregulation and improvement of the quality of education.
[You must be registered and logged in to see this link.]
