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

Video Miami Cubans Divided on New US Policy

While older, more conservative Cuban Americans have promoted anti-Castro political movement for years, younger generations say economically, it is time for change More

2014 Sees Dramatic Uptick in Boko Haram Abductions

Militants suspected in latest mass kidnapping of over 100 people in Gumsuri, Nigeria on Sunday More

Video Cuba Deal Is Major Victory for Pope

Role of Francis hailed throughout US, Latin America - though some Cuban-American Catholics have mixed feelings More

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.
Sudan School Becomes Target of Aerial Attacksi
X
December 19, 2014 12:45 AM
The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8143
JPY
USD
119.23
GBP
USD
0.6390
CAD
USD
1.1596
INR
USD
63.304

Rates may not be current.