Chart of the Week: Seeking Solutions to Growing Inequality
By IMFblog
As finance ministers and central banks gather in Washington this week for the spring meetings of the IMF and World Bank, income inequality will be among the topics of discussion.
While global economic integration has brought enormous benefits in the form of rising living standards, it has also contributed to widening inequality within some countries. In advanced economies, the incomes of the top 1 percent have grown three times faster than those of the rest of the population over the past three decades. (more…)
The Hollowing Out of Middle-Skilled Labor Share of Income
By Mai Dao, Mitali Das, Zsoka Koczan, and Weicheng Lian
Versions in عربي (Arabic), 中文 (Chinese), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)
Imagine how a typical factory today operates in many advanced economies. There are no longer many workers lined up along assembly belts. Instead, there are only a few of them—mostly likely engineers—looking at screens of highly sophisticated equipment that does the assembly once done by humans. With technological advancement constantly driving down the cost of capital, firms are increasingly replacing workers with machines.
Designed for Growth: Taxation and Productivity
By Vitor Gaspar and Laura Jaramillo
Versions in عربي (Arabic), 中文(Chinese), Français (French), Русский (Russian), and Español (Spanish)
Productivity drives our living standards. In our April 2017 Fiscal Monitor, we show that countries can raise productivity by improving the design of their tax system, which includes both policies and administration. This would allow business reasons, not tax ones, to drive firms’ investment and employment decisions.
Drivers of Declining Labor Share of Income
By Mai Chi Dao, Mitali Das, Zsoka Koczan, and Weicheng Lian
Versions in 中文 (Chinese), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)
After being largely stable in many countries for decades, the share of national income paid to workers has been falling since the 1980s. Chapter 3 of the April 2017 World Economic Outlook finds that this trend is driven by rapid progress in technology and global integration.
Emerging Markets and Developing Economies: Sustaining Growth in a Less Supportive External Environment
By Bertrand Gruss, Malhar Nabar, and Marcos Poplawski-Ribeiro
Versions in عربي (Arabic), 中文 (Chinese), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)
It is quite likely you are reading this on a smartphone or tablet assembled in an emerging market economy. The beverage beside you could well be tea grown in Sri Lanka or Kenya. And there is a chance that you are —or soon will be—on a plane headed for Shanghai, Sao Paulo, or St. Petersburg.
Channeling a Voice for Women
Muna AbuSulayman is a Saudi Arabian media personality, whose television show, Kalam Nawaem, which means “soft talk” in Arabic, is the longest running and most popular social issues show in the Middle East. In this podcast, AbuSulayman discusses pushing social boundaries, including on topics such as gender equality. (more…)
How an Extended Period of Low Growth Could Reshape the Financial Industry
By Gaston Gelos and Jay Surti
Versions in عربي (Arabic), Français (French), Русский (Russian), and Español (Spanish)
What happens if advanced economies remain stuck in a long-lasting funk marked by tepid growth, low interest rates, aging populations and stagnant productivity? Japan offers an example of the impact on banks, and our analysis suggests that there could also be far-reaching consequences for insurance companies, pension funds, and asset-management firms.
With Global Financial Markets, How Much Control Do Countries Have Over Economic Policies?
By Selim Ali Elekdag and Gaston Gelos
Versions in عربي (Arabic), Français (French), Русский (Russian), and Español (Spanish)
The outlook for further interest-rate increases by the US Federal Reserve revives interest in a compelling question: In an increasingly integrated global financial system, how much control do countries outside of the US retain over their economic policies?
(more…)Services Exports Open a New Path to Prosperity
By Prakash Loungani, Chris Papageorgiou, and Ke Wang
Versions in 中文 (Chinese), Français (French), 日本語 (Japanese), and Русский (Russian)
Services, which already account for 50 percent of world income and 70 percent of employment, are also becoming an important part of international trade. Services exports—accounting for nearly one fourth of total exports—have come to play a central role in the global economy, thanks in large part to advances in technology. (more…)
Chart of the Week: Slowing Productivity: Why It Matters and What To Do
By IMFBlog
Output per worker and total factor productivity have slowed sharply over the past decade in most advanced economies and many emerging and developing countries.
Even before the global financial crisis, productivity growth showed signs of slowing in many advanced economies. But in the aftermath of the crisis, there was a further, abrupt deceleration. (more…)
