The Decline in Manufacturing Jobs: Not Necessarily a Cause for Concern
By Bertrand Gruss and Natalija Novta
April 9, 2018
Version in عربي (Arabic), 中文 (Chinese), Español (Spanish), Français (French), 日本語 (Japanese), Português (Portuguese), Русский (Russian)
Textile manufacturing plant in Recife, Brazil: in many countries, the share of manufacturing jobs is declining (photo: Ingram Publishing/Newscom).
Manufacturing jobs are waning. In many emerging market and developing economies, workers are shifting from agriculture to services, bypassing the manufacturing sector. In advanced economies, the rise in service sector employment typically reflects the outright disappearance of manufacturing jobs. Continue reading “The Decline in Manufacturing Jobs: Not Necessarily a Cause for Concern” »
Globalization Helps Spread Knowledge and Technology Across Borders
By Aqib Aslam, Johannes Eugster, Giang Ho, Florence Jaumotte, Carolina Osorio-Buitron, and Roberto Piazza
April 9, 2018
Versions in عربي (Arabic), 中文 (Chinese), Español (Spanish), Français (French), 日本語 (Japanese), Português (Portuguese), Русский (Russian)
Using artificial intelligence at a hospital in Qingdao, China: the spread of knowledge and technology between countries has intensified (photo: Sipa Asia/Sipa USA/Newscom).
It took 1,000 years for the invention of paper to spread from China to Europe. Nowadays, in a world that has become more integrated, innovations spread faster and through many channels.
Our research in Chapter 4 of the April 2018 World Economic Outlook takes a closer look at how technology travels between countries. We find that the spread of knowledge and technology across borders has intensified because of globalization. In emerging markets, the transfer of technology has helped to boost innovation and productivity even in the recent period of weak global productivity growth. Continue reading “Globalization Helps Spread Knowledge and Technology Across Borders” »
Chart of the Week: Malaysia Needs More Women in the Workforce
By IMFBlog
April 2, 2018
Version in baˈhasa indoneˈsia (Indonesian)
Four students walk past a bank in Kuala Lumpur, Malaysia: Policies like improving the quality of education can help the country increase the number of women in the workforce (photo: John Mulligan/iStock by Getty Images).
Malaysia, a country well on its way to achieving high income status, can increase the number of women in the labor force by implementing key labor market reforms. And the country should, because our research shows that more women in the workforce benefits the economy. Continue reading “Chart of the Week: Malaysia Needs More Women in the Workforce” »
Managing Debt Vulnerabilities in Low-Income and Developing Countries
By Tao Zhang
March 22, 2018
Versions in Português (Portuguese)
Congested streets in Dhaka, Bangladesh. In a third of low-income countries, including Bangladesh, government deficits finance investment in much needed infrastructure (photo: Motoya Taguchi/Jiji Press/Newscom).
Government debt in some of the world’s poorest countries is rising to risky levels, a new IMF report shows. The report looks at economic developments and prospects among the world’s low-income countries, which account for a fifth of the world’s population but only four percent of global output. Continue reading “Managing Debt Vulnerabilities in Low-Income and Developing Countries” »
The Economic Scars of Crises and Recessions
By Valerie Cerra and Sweta C. Saxena
March 21, 2018
Version in 日本語 (Japanese), Português (Portuguese)
New study finds that all types of recessions lead to permanent losses in output and welfare (photo: Peshkov/iStock by GettyImages).
Economic recessions are typically described as short-term periods of negative economic growth. According to the traditional business cycle view, output moves up and down around its long-term upward trend and after a recession, it recovers to its pre-recession trend. Our new study casts doubt on this traditional view and shows that all types of recessions—including those arising from external shocks and small domestic macroeconomic policy mistakes—lead to permanent losses in output and welfare. Continue reading “The Economic Scars of Crises and Recessions” »
Adapting to Climate Change—Three Success Stories
By Evgenia Pugacheva and Mico Mrkaic
March 20, 2018
When governments subsidize private investment in adaptation, the economic costs of extreme weather events can be reduced (photo: Leolintang/iStock by Getty Images).
Climate change is one of the greatest threats facing our planet. Its negative effects on health, the biosphere, and labor productivity are already being felt throughout the world. Aware of the danger, communities, households, and governments have started taking measures to reduce their exposures and vulnerability to weather shocks and climate change. Our study in the World Economic Outlook shows that public investment in adaptation can partially reduce the economic costs of severe weather events. Continue reading “Adapting to Climate Change—Three Success Stories” »
A Framework for Currency Unions and IMF Lending
By Sean Hagan and Hugh Bredenkamp
March 16, 2018
Versions in عربي (Arabic), 中文 (Chinese), Español (Spanish), 日本語 (Japanese), Português (Portuguese)
New guidance approved by the IMF represents an important step in how the Fund supports members of currency unions undertaking adjustment (photo: IMF).
Countries benefit in various ways from belonging to a currency union—a group of countries that share a single currency. Businesses can trade and invest across borders more easily. Member countries gain access to larger markets without facing currency risk. And in some circumstances, currency unions can help support their members when they are hit by external shocks. Continue reading “A Framework for Currency Unions and IMF Lending” »
Policy Actions to Sustain Growth and Guard Against Risks
March 15, 2018
Versions in عربي (Arabic), 中文 (Chinese), Español (Spanish), Français (French), 日本語 (Japanese), Português (Portuguese) Русский (Russian)
Even though the sun still shines on the global economy, there are more clouds on the horizon (iStock by GettyImages).
When the Group of Twenty finance ministers and central bank governors met last October, there was a sense of optimism about the global economic upswing and the opportunities for much-needed reforms.
When they meet again in Buenos Aires next week, their focus will be on the policies needed to protect this upswing against downside risks and bolster growth going forward.
The good news is that the growth momentum has continued to strengthen, involving three- quarters of the world economy.
Continue reading “Policy Actions to Sustain Growth and Guard Against Risks” »
Addressing the Dark Side of the Crypto World
March 13, 2018
Versions in عربي (Arabic), 中文 (Chinese), Français (French), baˈhasa indoneˈsia (Indonesian), 日本語 (Japanese), Português (Portuguese), Русский (Russian)
The same reason crypto-assets like Bitcoin are so appealing is also what makes them dangerous (iStock by GettyImages).
Whether Bitcoin’s value goes up or Bitcoin’s value goes down, people around the world are asking the same question: What exactly is the potential of crypto-assets?
The technology behind these assets—including blockchain—is an exciting advancement that could help revolutionize fields beyond finance. It could, for example, power financial inclusion by providing new, low-cost payment methods to those who lack bank accounts and in the process empower millions in low-income countries. Continue reading “Addressing the Dark Side of the Crypto World” »
Fintech Quiz: How Much Do You Know?
By IMFBlog
March 12, 2018
Rapid advances in digital technology are transforming the financial services landscape (iStock by Getty Images).
From artificial intelligence to cryptography, rapid advances in digital technology are transforming the financial services landscape, creating opportunities and challenges for consumers, service providers, and regulators alike. This new wave of technology is often called “fintech” and the industry is thriving. Consumers worldwide are using two or more fintech services, sometimes without knowing they are using fintech services. Continue reading “Fintech Quiz: How Much Do You Know?” »
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