Inequality | IMF Blog

A Firming Recovery

July 24, 2017

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

(photo: IMF)

The recovery in global growth that we projected in April is on a firmer footing; there is now no question mark over the world economy’s gain in momentum.

As in our April forecast, the World Economic Outlook Update projects 3.5 percent growth in global output for this year and 3.6 percent for next.

The distribution of this growth around the world has changed, however: compared with last April’s projection, some economies are up but others are down, offsetting those improvements. Continue reading “A Firming Recovery” »

By IMFBlog| July 23rd, 2017|banking, capital flows, China, climate change, developing countries, Economic outlook, Emerging Markets, Employment, Environment, Europe, Financial markets, Fiscal, Fiscal policy, Globalization, growth, IMF, income, Inequality, inflation, Investment, Japan, jobs, labor force, labor markets, Low-income countries, Public debt, trade, Uncategorized, unemployment, wages|0 Comments

IMF Support for the United Nations’ Sustainable Development Goals

By Stefania Fabrizio, Roland Kpodar, and Chris Lane

July 19, 2017

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

Schoolchildren in line in Mali: Reducing the large gap between men’s and women’s education in some low-income states is one of the 2030 goals which IMF advice can address (photo: Stringer/Reuters/Newscom)

Since the adoption of the United Nation’s Sustainable Development Goals (SDGs) in 2015, we at the IMF have supported countries to reach their goals through policy advice, training, and financial support. Results will accrue over time, and we already see some notable progress. Continue reading “IMF Support for the United Nations’ Sustainable Development Goals” »

By IMFBlog| July 19th, 2017|climate change, developing countries, Economic outlook, Economic research, education, Emerging Markets, Employment, Environment, Finance, Gender issues, Government, Inequality, International Monetary Fund, jobs, labor force, Low-income countries, Middle East, Reform, South America, Uncategorized, unemployment, wages|0 Comments

Corrosive and Costly Corruption

By IMFblog

July 14, 2017

Corruption can hurt growth and ruin people’s economic chances (photo: Eugene Keebler/iStock)

Corruption can lead to pervasive distrust in government, generating violence, civil strife, and conflict. And the results are devastating for people.

Another problem is that corruption is costly—particularly for those who are already worse off. IMF research shows that in countries with greater levels of corruption, infant mortality and dropout rates are especially high, partly due to less spending on health and education. Reduced investment in these areas tends to hurt poor people the most, and contributes to higher inequality. Continue reading “Corrosive and Costly Corruption” »

By IMFBlog| July 14th, 2017|corruption, Economic research, Fiscal policy, Government, growth, inclusive growth, Inequality, International Monetary Fund, Investment, Politics, productivity, Public debt, taxation|0 Comments

Looking Back to Move Ahead

By IMFBlog

June 16, 2017

Ian Goldin at IMF lecture (photo: IMF staff)

While advances in science and technology are rapidly propelling human achievement into the future, Ian Goldin says history shows us how to handle the changes occurring in the world today. Continue reading “Looking Back to Move Ahead” »

By IMFBlog| June 16th, 2017|Fiscal policy, Globalization, Government, Inequality, International Monetary Fund, technology|0 Comments

Chart of the Week: Budget-friendly, Equitable Growth in France

By IMFBlog

May 15, 2017

Version in Français (French)

One need look no further than the national motto—liberté, égalité, fraternité—to understand that equality is an especially important concept in France. French policies play an important role in combating inequality. This is primarily achieved through a combination of minimum wage policies and an extensive tax and transfer system.

But these traditional equality-enhancing policies may have reached their limits as unemployment has become entrenched and budgets have been severely stretched. So, what are the best policies for a country weighing how to boost growth, lessen inequality, and minimize costs? It is not a zero sum game.

Continue reading “Chart of the Week: Budget-friendly, Equitable Growth in France” »

By IMFBlog| May 15th, 2017|Economic research, Employment, Europe, Government, IMF, Inequality, Public debt, taxation|0 Comments

A New Twist in the Link Between Inequality and Economic Development

By Francesco Grigoli

May 11, 2017

Version in عربي (Arabic), Español (Spanish)

Much has been written about the relationship between inequality and economic development, but theory remains inconclusive. When income is more concentrated in the hands of a few individuals, this can lead to less demand by the general population and lower investment in education and health, impairing long-term growth. At the same time, a certain level of inequality endows the rich with the means to start businesses, and creates incentives to increase productivity and investment, promoting economic activity. But the initial inequality levels also matter to explain why an increase in inequality varies in its impact on economic development across countries.

Continue reading “A New Twist in the Link Between Inequality and Economic Development” »

By IMFBlog| May 11th, 2017|capital flows, developing countries, Economic research, education, Employment, Financial markets, Gender issues, growth, inclusive growth, income, Inequality, International Monetary Fund, labor force, Uncategorized|0 Comments

The Economics of Trust

By IMFBlog

May 10, 2017

Trust in other people—the glue that holds society together—is increasingly in short supply in the United States and Europe, and inequality may be the culprit.

In surveys over the past 40 years, the share of Americans who say that most people can be trusted has fallen to 33 percent from about 50 percent. The erosion of trust coincides with widening disparities in incomes. Continue reading “The Economics of Trust” »

By IMFBlog| May 10th, 2017|Advanced Economies, capital flows, capital markets, Economic research, Europe, inclusive growth, Inequality, jobs, labor markets, Politics, U.S., wages|0 Comments

Maintaining the Positive Momentum of the Global Economy

Lagarde.2015MDPORTRAIT4_114x128 By Christine Lagarde

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

Baden-Baden, the German spa town built on ancient thermal springs, is a fitting venue to discuss the health of the global economy during this week’s meeting of the Group of Twenty finance ministers and central bank governors.

Policymakers will likely share a sense of growing optimism, because the recent strengthening of activity suggests that the world economy may finally snap out of its multi-year convalescence. Continue reading “Maintaining the Positive Momentum of the Global Economy” »

By IMFBlog| March 14th, 2017|Advanced Economies, G-20, growth, IMF, Investment, jobs, U.S., Uncategorized|0 Comments

Chart of the Week: More Women, More Growth

By iMFdirect

International Women’s Day and the United States’ February jobs report are both coming up this week. So, we decided today’s chart should focus on women and work.

Around the world, women seeking employment face barriers—from legal hurdles to disincentives like lower wages. Leveling the playing field could bring significant benefits. Continue reading “Chart of the Week: More Women, More Growth” »

By IMFBlog| March 6th, 2017|Gender issues, health, IMF, income, U.S., wages|0 Comments

What to Do about Growth

By Camilla Lund Andersen

Deep unease about rising inequality and stagnating living standards in advanced economies was at the heart of the 2016 political upheaval. Globalization and trade have been blamed, but entrenched slow growth—what economists call secular stagnation—may be the real culprit. Parents who took for granted that their children would enjoy a brighter future had their dreams dashed by the global financial crisis of 2008. Nine years later, rising populism and a return to nationalist, inward-looking policies threaten to unravel the postwar economic order. Continue reading “What to Do about Growth” »

By IMFBlog| February 28th, 2017|Advanced Economies, developing countries, Emerging Markets, Globalization, growth, IMF, Inequality|0 Comments

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