News / Economy

    IMF Raises 2010 Growth Forecast, Developing Economies Lead the Way

    The International Monetary Fund says the global economy will grow at a faster-than-expected rate this year as it continues to rebound from a crippling financial crisis.  The Washington-based international lending agency says the emerging markets of Brazil, China and India will help lead the global rebound.  

    In its latest World Economic Outlook report, the International Monetary Fund forecasts global economic growth of 4.2 percent for this year.  Its forecast for growth in 2011 remained at 4.3 percent, unchanged from its last forecast in January.

    IMF chief economist Olivier Blanchard says the world economy is at an important stage of its efforts to rebound from the global financial crisis.

    "A global depression has been averted," said Olivier Blanchard. "The world economy is recovering, and recovering better than we had previously thought likely.  This is certainly welcome news."

    Blanchard notes that emerging economies are leading the way in helping boost world economic growth.  Asia is forecast to see the strongest growth this year at 8.7 percent.

    The International Monetary Fund says many economies have resumed a high rate of growth, but challenges remain.  Among advanced economies, the United States is expected to outperform Europe and Japan, but it will lag behind China and other developing nations.

    IMF chief economist Blanchard:

    "In the U.S., consumers, who were the drivers of the economy before the crisis are being more prudent," he said. "In Europe, where banks play a central role in financial intermediation, the weak banking sector limits credit supply.  In Japan, deflation has re-appeared, leading to higher interest rates and putting in danger an already weak recovery."

    China is expected to grow by 10 percent this year, and India by 8.8 percent.  The U.S. economy is forecast to grow by 3.1 percent.

    The International Monetary Fund says growth for the 16 European countries that share the euro currency will be one percent in 2010.

    Blanchard says despite the good news, achieving strong sustained and balanced growth for the global economy will not be easy.

    "It will require more work, namely fiscal consolidation in advanced countries, exchange rate adjustments, rebalancing of demand across the world, these are the tasks facing policymakers over the next few years," said Blanchard.

    Fiscal consolidation refers to the use of policy to reduce government deficits and debt.

    The IMF report warned the failure of nations to contain soaring public debt could have severe consequences on the global economy.

    Blanchard says the solution to the challenges facing emerging and advanced economies lies in the adjustment of their exchange rates.  He says that as advanced economies work to deal with debt and deficit, which would have a negative impact on growth, they may need to let their currencies depreciate to help increase exports and hence growth.

    He says emerging countries need to do the opposite, let their currencies appreciate and reduce exports.  Blanchard says that it is in their interest to do so because global growth will help support the growth of their economies.

    "In China, for example, a shift away from exports, towards domestic consumption, a shift that requires both structural measures to decrease savings, and an appreciation of the currency, appears highly desirable," he said.

    China has been under increasing pressure from the United States and other countries to let its currency, the yuan, strengthen so global products can be more competitive against Chinese exports.

    The new IMF forecast for global economic growth was issued just before a key meeting of global financial leaders this week in Washington.

    On Friday, global financial leaders will hold day-long talks with the Group of 20 nations, a bloc that includes the world's richest industrial nations as well developing nations such as Brazil, China, India and Russia.

    The talks on Friday, as well as meetings on Saturday and Sunday, are expected to focus on efforts to overhaul financial regulatory systems, rebalance global growth and ways to make the recovery more sustainable.   

    You May Like

    Turkey, US Splits Deepen Over Support for Kurdish Militants

    Ankara summons American ambassador to protest remarks by State Department spokesman who said Washington does not consider Syria's Kurdish Democracy Union Party (PYD) a terrorist organization

    Obama Seeking $19 Billion for National Cybersecurity

    Move, touted as attempt to build broad, cohesive federal response to cyberthreats, calls for increase in cybersecurity spending across all government agencies

    Video Foreign Policy Weighs Heavy for Some US Voters

    VOA talks to protesters in Manchester, New Hampshire, who sound off on foreign policy issues such as the Guantanamo Bay prison, the Israeli-Palestinian conflict and the wars in Iraq, Syria and Yemen

    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.
    Valentine's Day Stinks for Lebanese Clownsi
    X
    February 09, 2016 8:04 PM
    This weekend, on Valentine's Day in Lebanon, love is not the only thing in the air. More than half a year after the country's trash crisis began, the stink of uncollected garbage remains on the streets. Step forward "Clown Me In," a group of clowns who use their skills for activism. Before the most romantic day of the year the clowns have released their unusual take on love in Lebanon -- in a bid to keep the pressure up and get the trash off the streets. John Owens reports from Beirut.
    Video

    Video Valentine's Day Stinks for Lebanese Clowns

    This weekend, on Valentine's Day in Lebanon, love is not the only thing in the air. More than half a year after the country's trash crisis began, the stink of uncollected garbage remains on the streets. Step forward "Clown Me In," a group of clowns who use their skills for activism. Before the most romantic day of the year the clowns have released their unusual take on love in Lebanon -- in a bid to keep the pressure up and get the trash off the streets. John Owens reports from Beirut.
    Video

    Video Rocky Year Ahead for Nigeria Amid Oil Price Crash

    The global fall in the price of oil has rattled the economies of many petroleum exporters, and Africa’s oil king Nigeria is no exception. As Chris Stein reports from Lagos, analysts are predicting a rough year ahead for the continent’s top producer of crude.
    Video

    Video Foreign Policy Weighs Heavy for Some US Voters

    VOA talks to protesters in Manchester, New Hampshire who sound off on foreign policy issues such as the Guantanamo Bay Prison, the Israeli-Palestinian conflict, Middle East Affairs and national security.
    Video

    Video 'No Means No' Program Targets Sexual Violence in Kenya

    The organizers of an initiative to reduce and stop rape in the informal settlements around Kenya's capital say their program is having marked success. Girls are taking self-defense classes while the boys are learning how to protect the girls and respect them. Lenny Ruvaga reports from Nairobi.
    Video

    Video New Hampshire Voters Are Independent, Mindful of History

    Once every four years, the northeastern state of New Hampshire becomes the center of the U.S. political universe with its first-in-the-nation presidential primary. What's unusual about New Hampshire is how seriously the voters take their role and the responsibility of being among the first to weigh in on the candidates.
    Video

    Video Chocolate Lovers Get a Sweet History Lesson

    Observed in many countries around the world, Valentine’s Day is sometimes celebrated with chocolate festivals. But at a festival near Washington, the visitors experience a bit more than a sugar rush. They go on a sweet journey through history. VOA’s June Soh takes us to the festival.
    Video

    Video 'Smart' Bandages Could Heal Wounds More Quickly

    Simple bandages are usually seen as the first line of attack in healing small to moderate wounds and burns. But scientists say new synthetic materials with embedded microsensors could turn bandages into a much more valuable tool for emergency physicians. VOA’s George Putic reports.
    Video

    Video Bhutanese Refugees in New Hampshire Closely Watching Primary Election

    They fled their country and lived in refugee camps in neighboring Nepal for decades before being resettled in the northeastern U.S. state of New Hampshire -- now the focus of the U.S. presidential contest. VOA correspondent Aru Pande spoke with members of the Bhutanese community, including new American citizens, about the campaign and the strong anti-immigrant rhetoric of some of the candidates.
    Video

    Video Researchers Use 3-D Printer to Produce Transplantable Body Parts

    Human organ transplants have become fairly common around the world in the past few decades. Researchers at various universities are coordinating their efforts to find solutions -- including teams at the University of Pennsylvania and Rice University in Houston that are experimenting with a 3-D printer -- to make blood vessels and other structures for implant. As VOA’s Greg Flakus reports from Houston, they are also using these artificial body parts to seek ways of defeating cancerous tumors.
    Video

    Video Helping the Blind 'See' Great Art

    There are 285 million blind and visually impaired people in the world who are unable to enjoy visual art at a museum. One New York photographer is trying to fix this situation by making tangible copies of the world’s masterpieces. VOA correspondent Victoria Kupchinetsky was there as visually impaired people got a feel for great art. Joy Wagner narrates her report.
    Video

    Video German Artists to Memorialize Refugees With Life Jacket Exhibit

    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video E-readers Help Ease Africa's Book Shortage

    Millions of people in Africa can't read, and there's a chronic shortage of books. A non-profit organization called Worldreader is trying to help change all that one e-reader at a time. VOA’s Deborah Block tells us about a girls' school in Nairobi, Kenya where Worldreader is making a difference.
    Video

    Video Genius Lets World Share Its Knowledge

    Inspired by crowdsourcing companies like Wikipedia, Genius allows anyone to edit anything on the web, using its web annotation tool
    Video

    Video In Philippines, Mixed Feelings About Greater US Military Presence

    In the Philippines, some who will be directly affected by a recent Supreme Court decision clearing the way for more United States troop visits are having mixed reactions.  The increased rotations come at a time when the Philippines is trying to build up its military in the face of growing maritime assertiveness from China.  From Bahile, Palawan on the coast of the South China Sea, Simone Orendain has this story.

    World Currencies

    EUR
    USD
    0.9008
    JPY
    USD
    116.30
    GBP
    USD
    0.6957
    CAD
    USD
    1.3951
    INR
    USD
    68.033

    Rates may not be current.