A Digital-Savvy Indonesia

By Tidiane Kinda and Ting Yan

February 22, 2018

A salesperson shows a customer the latest smartphones in a showroom in Jakarta, Indonesia: the use of mobile internet services continues to grow rapidly in the country (photo: Beawhiharta/Reuters/ /Newscom).

With the third largest youth population in the world and 130 million active social media users, Indonesia is poised to become the biggest digital economy country in Southeast Asia. To fully embrace the digital opportunity, Indonesia must enhance its infrastructure and increase internet penetration to lift economic growth and productivity.

According to a McKinsey report, digitization could expand Indonesia’s economy by 10 percent of GDP and add 3.7 million jobs by 2025. Continue reading “A Digital-Savvy Indonesia” »

Smartphones Drive New Global Tech Cycle, but Is Demand Peaking?

By Benjamin Carton, Joannes Mongardini, and Yiqun Li

February 8, 2018

 Demand for smartphones is highly cyclical and related to the release of new models (photo: iStock by GettyImages).

Over a decade of spectacular growth, demand for smartphones has created a new global tech cycle that last year produced a new smartphone for every fifth person on earth.

This has created a complex and evolving supply chain across Asia, changing the export and growth performance of several countries. While our recent analysis of Chinese smartphone exports suggests that the global market may be saturated, demand for other electronics continues to support rising semiconductor production in Asia. Continue reading “Smartphones Drive New Global Tech Cycle, but Is Demand Peaking?” »

South Africa’s Lesetja Kganyago: Fintech Is a Central Banker’s Friend

By IMFBlog

January 26, 2018 

Lesetja Kganyago, South Africa’s Central Bank Governor and Chairman of the International Monetary and Financial Committee (photo: IMF staff).

While central bankers are often seen as somewhat traditionalist, South Africa’s Reserve Bank Governor Lesetja Kganyago is breaking that mold. Kganyago sees how new technology—or fintech—is transforming the financial sector, and in this podcast, he says there is no turning back. Continue reading “South Africa’s Lesetja Kganyago: Fintech Is a Central Banker’s Friend” »

Latin America and the Caribbean in 2018: An Economic Recovery in the Making

By Alejandro Werner

January 25, 2018

Versions in Español (Spanish) and Português (Portuguese)

Latin America’s economic recovery is expected to benefit from higher commodity prices (photo: iStock by Getty Images)

Recent trends in the world economy and financial markets are good news for Latin America. Global growth and trade are on an upswing, and we expect the momentum to continue in 2018. Stronger commodity prices have also helped the region rebound. Continue reading “Latin America and the Caribbean in 2018: An Economic Recovery in the Making” »

The Current Economic Sweet Spot Is Not the “New Normal”

By Maurice Obstfeld

January 22, 2018

Versions in عربي (Arabic),  中文 (Chinese),  Español (Spanish), Français (French), 日本語 (Japanese),  Русский (Russian)

Global growth continues to pick up and is broad based. But no matter how tempting it is to sit back and enjoy the sunshine, policy can and should move to strengthen the recovery (photo: Mumbai, India, Ingram Publishing/Newscom).

As the year 2018 begins, the world economy is gathering speed. The new World Economic Outlook Update revises our forecast for the world economy’s growth in both 2018 and 2019 to 3.9 percent. For both years, that is 0.2 percentage points higher than last October’s forecast, and 0.2 percentage points higher than our current estimate of last year’s global growth. Continue reading “The Current Economic Sweet Spot Is Not the “New Normal”” »

No Roads? No Problem: The Leapfrogging Drones of Rwanda

By IMFBlog

January 12, 2018

Zipline drone on a launch pad at operations center in Muhanda, Rwanda. (photo: James Akena/Reuters/Newscom).

What’s the best solution to a lack of infrastructure? Find a solution that doesn’t require infrastructure. That’s what Zipline has done in Rwanda—a start-up that deploys drones to make emergency medical deliveries to remote hospitals and clinics.

“Obviously in instances where Zipline can make a delivery to a place that wouldn't otherwise be reachable by roads, that's a good example of leapfrogging over the absence of infrastructure,” Zipline CEO Keller Rinaudo said. Continue reading “No Roads? No Problem: The Leapfrogging Drones of Rwanda” »

The Art in Artificial Intelligence: Make the Robots Serve the Public Good

By Brian McNeill

January 11, 2018

Versions in 中文 (Chinese), Español (Spanish), Français (French), 日本語 (Japanese),  Русский (Russian)

Artificial intelligence can create a roadmap for future opportunities if utilized appropriately (photo: monsitj/iStock by Getty Images).

Over the past few years, artificial intelligence has rapidly matured as a viable field of technology. Machines that learn from experience, adjust to new inputs, and perform tasks once uniquely the domain of humans, have entered our daily lives in ways seen and unseen. Given the current breakneck pace of change and innovation, the question for governments and policymakers is how to harness the benefits of artificial intelligence, and not be trampled by the robot takeover of our nightmares. The answer is simple: make them work for us. Continue reading “The Art in Artificial Intelligence: Make the Robots Serve the Public Good” »

Gamechanger: The Digital Payment Boom in India

By IMFBlog

January 5, 2018

Madhur Deora, CFO of PayTM: Mobile payment platforms in India are providing small loans to people who’ve never had access to credit (IMF photo).

What does a shoe shiner in India have in common with central bankers and finance ministers? They both can appreciate the digital-payment boom. It’s sweeping the world but has accelerated in India, where last November the government demonetized—declaring that 86 percent of the country’s currency in circulation would cease to be legal tender. Continue reading “Gamechanger: The Digital Payment Boom in India” »

Top Ten Blogs of 2017

By IMFBlog

December 28, 2017

Read the top ten blogs of 2017 (photo: Times Square- New York-Pacific Press/SipaUSA/Newscom)

We have all had quite the year. Our readers' interests in 2017 focused on topics that affect how people live their lives: why wages are low, rising income and wealth inequality, household debt, climate change, and the scourge of corruption, to name a few.

As we wrap up the highs and lows of 2017 and get ready for whatever 2018 has in store, here is the list of the top ten blogs of the year based on readership. From all the elves editors at IMFBlog, we wish you a year of peace and interesting reads.

Continue reading “Top Ten Blogs of 2017” »

Chart of the Week: Oil Prices & Energy Subsidies

By IMFBlog

November 27, 2017

Versions in  中文(Chinese); Español (Spanish), Français (French), 日本語 (Japanese)

Universal fuel and energy subsidies have been prevalent in sub-Saharan Africa, but they have substantial drawbacks (photo: Reuters/Newscom).

Reforms in some mostly oil-exporting countries, along with lower international fuel prices since 2014, have reduced the size of fuel subsidies in sub-Saharan Africa, and they need to do more  given the recent rise in international fuel prices.

Universal fuel and energy subsidies have been prevalent in sub-Saharan Africa, but they have substantial drawbacks. They tend to benefit the rich rather than the poor, foster fuel overconsumption, and crowd out more productive government spending. Continue reading “Chart of the Week: Oil Prices & Energy Subsidies” »

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