Welfare Versus GDP: What Makes People Better Off

By Geoffrey Bannister and Alexandros Mourmouras

March 7, 2018

Oslo, Norway. In rich countries like Norway, that have greater life expectancy, more leisure, and lower inequality, measured well-being is higher than income (photo: iStock by Getty Images).

For years, economists have worked to develop a way of measuring general well-being and comparing it across countries. The main metric has been differences in income or gross domestic product per person. But economists have long known that GDP is an imperfect measure of well-being, counting just the value of goods and services bought and sold in markets.

The challenge is to account for non-market factors such as the value of leisure, health, and home production, such as cleaning, cooking and childcare, as well as the negative byproducts of economic activity, such as pollution and inequality. Continue reading “Welfare Versus GDP: What Makes People Better Off” »

A Digital-Savvy Indonesia

By Tidiane Kinda and Ting Yan

February 22, 2018

Version in  中文 (Chinese), baˈhasa indoneˈsia (Indonesian)

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” »

Sub-Saharan Africa: Diversifying for Tomorrow

By IMFBlog

February 16, 2018

Photo: iStock by Getty Images/subman

Countries in sub-Saharan Africa need to diversify their economies, and the region’s youth need to be at the heart of it, says Axel Schimmelpfennig.

Schimmelpfennig is head of the IMF team for Uganda, and a coauthor of a study that looks at the potential benefits of a stepped-up diversification agenda in sub-Saharan Africa.

In this podcast, Schimmelpfennig talks about the need for sub-Saharan Africa to increase productivity in areas like agriculture and manufacturing to become more competitive in the export market and allow for increasing wages. Continue reading “Sub-Saharan Africa: Diversifying for Tomorrow” »

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”” »

Three German Economic Challenges with European Effect

By Christine Lagarde

January 17, 2018

Berlin, Germany: The bright economic outlook offers a chance for policymakers to address the country’s economic challenges (photo: iStock/Andrey Danilovich).

The economic outlook for Germany is bright. Optimism among investors abounds, and unemployment is at a record low. Policymakers now have a unique opportunity to address the challenges facing the German economy. These are varied but include boosting wages, investing in infrastructure, and reducing the large trade surplus. As the largest economy of the euro area, Germany also has a stake in fostering reforms in the monetary union. Successfully rising to these challenges is critical for Germany and for the euro area as a whole.

Continue reading “Three German Economic Challenges with European Effect” »

By | January 17th, 2018|Advanced Economies, aging, inflation, infrastructure, Investment, productivity, trade, wages|

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” »

GDP: Falling Short

By IMFBlog

December 22, 2017

Economist Diane Coyle speaking at the IMF Statistical Forum on Measuring the Digital Economy (photo: IMF)

Gross domestic product, or GDP, has been used to measure growth since the Second World War when economies were all about mass production and manufacturing. In this podcast, economist Diane Coyle, says GDP is less well suited to measure progress in today’s digital economy. Continue reading “GDP: Falling Short” »

The Year in Review: Global Economy in 5 Charts

By Oya Celasun, Gian Maria Milesi-Ferretti, and Maurice Obstfeld

December 18, 2017

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

On the economic front, 2017 is ending on a high note (photo: allstars/shutterstock).

It has been a tumultuous year marked by natural disasters, geopolitical tensions, and deep political divisions in many countries.

On the economic front, however, 2017 is ending on a high note, with GDP continuing to accelerate over much of the world in the broadest cyclical upswing since the start of the decade. Continue reading “The Year in Review: Global Economy in 5 Charts” »

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