News / Economy

    IMF: Global Economic Prospects Improve But Recovery Is 'Bumpy' for Some

    IMF: Global Economic Prospects Improve But Recovery Is 'Bumpy' for Somei
    X
    April 16, 2013 10:45 PM
    The International Monetary Fund has cut its outlook for global economic growth, saying the recovery is likely to be uneven. The global lending organization predicts overall growth will average 3.3 percent this year - down from its earlier forecast of 3.5 percent. The revised outlook comes as member nations gather in Washington for the annual IMF-World Bank Meetings. Mil Arcega has more.
    The International Monetary Fund has cut its outlook for global economic growth, saying the recovery is likely to be uneven. The global lending organization predicts overall growth will average 3.3 percent this year - down from its earlier forecast of 3.5 percent.  The revised outlook comes as member nations gather in Washington for the annual IMF-World Bank Meetings. 

    The rise of emerging economies, a stagnant Europe and the plight of the world's poor takes center stage as international and financial policy leaders meet in Washington.  

    While economic growth continues at a healthy pace in developing nations, advanced economies are facing a bumpy road to recovery, says IMF Chief Economist Olivier Blanchard.

    "I think the main challenge is still very much, in Europe," said Blanchard. "The U.S. is doing better, emerging markets are doing fairly well,  Europe is still the issue."

    The IMF says ongoing debt problems in the region and the recent banking crisis in Cyprus are likely to keep the 17-nation eurozone in a mild recession until at least next year.

    In contrast, China is forecast to grow eight percent this year with developing economies following close behind. Blanchard says that doesn't mean emerging economies are immune, especially those that depend on exports.

    "The main challenge for them is to deal with what's happening in advanced countries," he said. "And what this means is fluctuations in trade, capital markets - very volatile, capital flows coming to them.  They basically have to handle the capital flows, they have to maintain activity, avoid overheating."

    For the world's largest economy, the outlook is for a slow but steady recovery.
    Despite government spending cuts in the U.S. earlier this year, Blanchard says several factors should lead to stronger growth in 2014.

    "The first one is very strong monetary policy, which makes the [interest] rates very low," said Blanchard. "The second is a banking system which is not yet in perfect shape but is much stronger than it used to be.  And then the third is this thing economists call, pent-up demand."

    Despite what he calls a three-speed global recovery,  Blanchard says the world's economy is only as strong as its weakest link.
     
    Later in the week - the World Bank addresses one of the biggest challenges to global growth - unemployment.

    You May Like

    US Lawmakers Vow to Continue Immigrant Program for Afghan Interpreters

    Congressional inaction threatens funding for effort which began in 2008 and has allowed more than 20,000 interpreters, their family members to immigrate to US

    Leaderless, Rudderless, Britain Drifts

    Experts predicted chaos would follow, if Britain decided to vote for Brexit, and chaos has

    US to Train Cambodian Government on Combating Cybercrime

    Concerns raised over drafting of law, as critics fear cybercrime regulations could be used to restrict freedom of expression and stifle political dissent

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Baghdad Bikers Defy War with a Roari
    X
    June 28, 2016 10:33 AM
    Baghdad is a city of contradictions. War is a constant. Explosions and kidnappings are part of daily life. But the Iraqi capital remains a thriving city, even if a little beat up. VOA's Sharon Behn reports on how some in Baghdad are defying the stereotype of a nation at war by pursuing a lifestyle known for its iconic symbols of rebellion: motorbikes, leather jackets and roaring engines.
    Video

    Video Baghdad Bikers Defy War with a Roar

    Baghdad is a city of contradictions. War is a constant. Explosions and kidnappings are part of daily life. But the Iraqi capital remains a thriving city, even if a little beat up. VOA's Sharon Behn reports on how some in Baghdad are defying the stereotype of a nation at war by pursuing a lifestyle known for its iconic symbols of rebellion: motorbikes, leather jackets and roaring engines.
    Video

    Video Melting Pot of Immigrants Working to Restore US Capitol Dome

    The American Iron Works company is one of the firms working to renovate the iconic U.S. Capitol Dome. The company employs immigrants of many different cultural and national backgrounds. VOA’s Arman Tarjimanyan has more.
    Video

    Video Testing Bamboo as Building Material

    For thousands of years various species of bamboo - one of the world's most versatile plants - have been used for diverse purposes ranging from food and medicine to textiles and construction. But its use on a large scale is hampered because it's not manufactured to specific standards but grown in the ground. A University of Pittsburgh professor is on track to changing that. VOA’s George Putic reports.
    Video

    Video Orphanage in Iraqi City Houses Kids Who Lost their Parents to Attacks by IS

    An orphanage in Iraqi Kurdistan has become home to scores of Yazidi children who lost their parents after Islamic State militants took over Sinjar in Iraq’s Nineveh Province in 2014. Iraqi Kurdish forces backed by the U.S. airstrikes have since recaptured Sinjar but the need for the care provided by the orphanage continues. VOA’s Kawa Omar filed this report narrated by Rob Raffaele.
    Video

    Video Re-Opening Old Wounds in a Bullet-Riddled Cultural Landmark

    A cultural landmark before Lebanon’s civil war transformed it into a nest of snipers, Beirut’s ‘Yellow House’ is once again set to play a crucial role in the city.  Built in a neo-Ottoman style in the 1920s, in September it is set to be re-opened as a ‘memory museum’ - its bullet-riddled walls and bunkered positions overlooking the city’s notorious ‘Green Line’ maintained for posterity. John Owens reports from Beirut.
    Video

    Video Brexit Resounds in US Presidential Contest

    Britain’s decision to leave the European Union is resounding in America’s presidential race. As VOA’s Michael Bowman reports, Republican presumptive nominee Donald Trump sees Britain’s move as an affirmation of his campaign’s core messages, while Democrat Hillary Clinton sees the episode as further evidence that Trump is unfit to be president.
    Video

    Video New York Pride March A Celebration of Life, Mourning of Loss

    At this year’s march in New York marking the end of pride week, a record-breaking crowd of LGBT activists and allies marched down Manhattan's Fifth Avenue, in what will be long remembered as a powerful display of solidarity and remembrance for the 49 victims killed two weeks ago in an Orlando gay nightclub.
    Video

    Video NASA Juno Spacecraft, Nearing Jupiter, to Shed Light on Gas Giant

    After a five-year journey, the spacecraft Juno is nearing its destination, the giant planet Jupiter, where it will enter orbit and start sending data back July 4th. As Mike O'Sullivan reports from Pasadena, California, the craft will pierce the veil of Jupiter's dense cloud cover to reveal its mysteries.
    Video

    Video Orlando Shooting Changes Debate on Gun Control

    It’s been nearly two weeks since the largest mass shooting ever in the United States. Despite public calls for tighter gun control laws, Congress is at an impasse. Democratic lawmakers resorted to a 1960s civil rights tactic to portray their frustration. VOA’s Carolyn Presutti explains how the Orlando, Florida shooting is changing the debate.
    Video

    Video Tunisian Fishing Town Searches for Jobs, Local Development Solutions

    As the European Union tries to come to grips with its migrant crisis, some newcomers are leaving voluntarily. But those returning to their home countries face an uncertain future.  Five years after Tunisia's revolution, the tiny North African country is struggling with unrest, soaring unemployment and plummeting growth. From the southern Tunisian fishing town of Zarzis, Lisa Bryant takes a look for VOA at a search for local solutions.
    Video

    Video 'American Troops' in Russia Despite Tensions

    Historic battle re-enactment is a niche hobby with a fair number of adherents in Russia where past military victories are played-up by the Kremlin as a show of national strength. But, one group of World War II re-enactors in Moscow has the rare distinction of choosing to play western ally troops. VOA's Daniel Schearf explains.
    Video

    Video Muslim American Mayor Calls for Tolerance

    Syrian-born Mohamed Khairullah describes himself as "an American mayor who happens to be Muslim." As the three-term mayor of Prospect Park, New Jersey, he believes his town of 6,000 is an example of how ethnicity and religious beliefs should not determine a community's leadership. Ramon Taylor has this report from Prospect Park.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.9092
    JPY
    USD
    101.65
    GBP
    USD
    0.7583
    CAD
    USD
    1.3047
    INR
    USD
    67.954

    Rates may not be current.