Climate Change Will Bring More Frequent Natural Disasters & Weigh on Economic Growth

by Sebastian Acevedo, and Natalija Novta

November 16, 2017

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

As natural disasters become more frequent and intense, countries should invest in resilient infrastructure to better withstand such hazards (photo: Carlos Garcia Rawlins/Newscom).

The weather seems to be getting wilder and fiercer. From devastating hurricanes in the U.S. and the Caribbean, to raging wildfires in California and ruinous floods in India, the human and economic toll of extreme weather events is enormous. Continue reading “Climate Change Will Bring More Frequent Natural Disasters & Weigh on Economic Growth” »

Roads or Schools: A Critical Tradeoff

By Manoj Atolia, Bin Grace Li, Ricardo Marto, and Giovanni Melina

November 9, 2017 

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

Low-income countries tend to spend less on schools than on roads as a share of GDP (photo: iStock by Getty Images).

Roads or schools? It’s a question akin to the “guns or butter” choice that governments around the world confronted in the 20th century: How to spend a nation’s finite resources to produce the maximum benefit for its people.

In our recent IMF Working Paper, we find that low-income countries tend to spend less on schools than on roads as a share of GDP—even though investment in education may be a more pressing need in their societies. 

Continue reading “Roads or Schools: A Critical Tradeoff” »

Understanding and Managing Financial Interdependence

By Maurice Obstfeld

November 8, 2017

(photo: AlexLMX and David Hunt/iStock)

The 18th Annual Jacques Polak Annual Research Conference last week opened with Managing Director Christine Lagarde noting the ebb and flow of capital movements into emerging market and developing economies since the turn of the millennium. She asked three questions at the heart of the discussion, and to which speakers returned consistently during the conference: Continue reading “Understanding and Managing Financial Interdependence” »

Catch-Up Prospects in Emerging Economies: A Glass One Quarter Empty

By IMFBlog

November 6, 2017

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

A closer look at per capita incomes by country paints a different and more nuanced picture (photo: Pavel1964/iStock).

Per capita incomes in emerging market and developing economies are expected to grow by about 2 percentage points faster per year than advanced economies between 2017 and 2022. The implication is that the gap in income levels between the two groups of countries is narrowing. However, a closer look at per capita incomes by country paints a different and more nuanced picture.  Continue reading “Catch-Up Prospects in Emerging Economies: A Glass One Quarter Empty” »

More Action Needed to Resolve Problem Loans in the Caribbean

By Kimberly Beaton and Inci Otker

October 31, 2017

The global financial crisis has left high levels of problem loans in the Caribbean (image: William Potter/iStock by Getty Images).

The global financial crisis and subsequent economic recession saddled banks in the Caribbean with high levels of problem loans. The share of nonperforming loans to total loans more than tripled in many Caribbean countries from 2007 to 2016, and they have been slow to come down. Problem loans (loans that are 90 days or more past due) are bad news for banks and the economy. Continue reading “More Action Needed to Resolve Problem Loans in the Caribbean” »

Inequality: Fiscal Policy Can Make the Difference

By Vitor Gaspar and Mercedes Garcia-Escribano

 October 11, 2017

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

Wealth and poverty side-by-side in Rio de Janeiro, Brazil: inequality is rising within countries around the world (photo: Jean-Marc David/SIPA/Newscom). 

Income inequality among people around the world has been declining in recent decades. This is due to countries like China and India’s incomes catching-up to advanced economies. But the news is not all good. Inequality within countries has increased, particularly in advanced economies. Since the global economic recovery has gained pace and is now widespread, policymakers have a window of opportunity to respond with reforms that tackle inequality, and our new Fiscal Monitor shows how the right mix of fiscal policies can make the difference.

Continue reading “Inequality: Fiscal Policy Can Make the Difference” »

Global Economic Upswing Creates a Window of Opportunity

By Maurice Obstfeld

October 10, 2017

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

 

The global recovery is continuing, and at a faster pace. The picture is very different from early last year, when the world economy faced faltering growth and financial market turbulence. We see an accelerating cyclical upswing boosting Europe, China, Japan, and the United States, as well as emerging Asia.

The latest World Economic Outlook has therefore upgraded its global growth projections to 3.6 percent for this year and 3.7 percent for next—in both cases 0.1 percentage point above our previous forecasts, and well above 2016’s global growth rate of 3.2 percent, which was the lowest since the global financial crisis. Continue reading “Global Economic Upswing Creates a Window of Opportunity” »

The Unequal Burden of Rising Temperatures: How Can Low-Income Countries Cope?

By Sebastian Acevedo, Mico Mrkaic, Evgenia Pugacheva, and Petia Topalova

September 27, 2017

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

The Earth’s temperature is rising. This will shape the economic future of communities across the globe (photo: Leolintang/iStock by GettyImages).

The Earth’s temperature is rising and its climate is changing. The increase in temperatures will shape the economic future of communities and countries across the globe. All countries will feel the direct negative effects from unmitigated climate change. But as our research in Chapter 3 of the October 2017 World Economic Outlook shows, the effects of higher temperatures will not be equal everywhere and the brunt of the adverse consequences will be borne by those who can least afford it—low-income countries.  Continue reading “The Unequal Burden of Rising Temperatures: How Can Low-Income Countries Cope?” »

Structural Reforms Give Biggest Help To Lagging Countries

By Angana Banerji and Christian Ebeke

September 22, 2017

Structural reforms can jumpstart productivity in countries with weaker initial productivity, and help them catch up with their peers (photo: The Palmer/iStock).

Labor and product market reforms, which make economies more efficient, can benefit all countries. But they are especially helpful in jumpstarting productivity in countries where productivity is weaker. This is good news as it implies that reforms are one route through which countries with lower per capita incomes can catch up with richer countries instead of persistently lagging behind: economic hardship is not destiny. Our new paper provides fresh arguments in favor of the often-difficult structural reforms. Continue reading “Structural Reforms Give Biggest Help To Lagging Countries” »

Corruption in Latin America: Taking Stock

By  David LiptonAlejandro Werner, Carlos Gonçalves

September 21, 2017 

Versions in Español (Spanish)  Português (Portuguese)

Systemic corruption drains public resources and drags down economic growth (photo: People Images/iStock).

Corruption continues to make headlines in Latin America. From a scheme to shelter assets leaked by documents in Panama, to the Petrobras and Odebrecht scandals that have spread beyond Brazil, to eight former Mexican state governors facing charges or being convicted, the region has seen its share of economic and political fallout from corruption. Latin Americans are showing increasing signs of discontent and demanding that their governments tackle corruption more aggressively.

Continue reading “Corruption in Latin America: Taking Stock” »

Load More Posts