Arab Today, arab today risks rising imf cuts global forecast
Last Updated : GMT 08:59:31
Arab Today, arab today
Arab Today, arab today

Risks rising: IMF cuts global forecast

Arab Today, arab today

Arab Today, arab today Risks rising: IMF cuts global forecast

Washington - AFP

The IMF slashed its global growth forecast and warned things could get much worse if the eurozone crisis is not quelled and Washington fails to reverse the looming \"fiscal cliff\" austerity plan. Unrelenting market turbulence and budget-cutting in developed countries has spun worries about risks across the globe, slowing trade and investment, the International Monetary Fund said in a report released Tuesday in Tokyo. The Fund cut its growth forecast for this year to 3.3 percent, from its July estimate of 3.5 percent, with Asia still leading the pack of expanding regions while Europe contracts an expected 0.4 percent this year. Growth will only hit 3.6 percent next year -- lower than the 3.9 percent predicted in July -- as even powerful emerging economies like China, India and Brazil hit the brakes, the Fund said. But it warned that its assumptions are based on Europe\'s leaders getting ahead of their crisis soon and US politicians reversing course from the harsh spending cuts and tax hikes slated for January 2013 in a poison-pill deficit deal cemented last year but never intended for implementation. \"Failure to act on either issue would make growth prospects far worse,\" the Fund said in its World Economic Outlook. Whether the world\'s economy can achieve even the lowered forecasts, the Fund said, \"depends on whether European and U.S. policymakers deal proactively with their major short-term economic challenges.\" \"The most immediate downside risk -- that delayed or insufficient policy action will further escalate the euro area crisis -- remains in place.\" \"In the United States, it is imperative to avoid excessive fiscal consolidation (the fiscal cliff) in 2013, to raise the debt ceiling promptly, and to agree on a credible medium-term fiscal consolidation plan.\" The IMF said the main forces pulling down growth in advanced economies are pressure to close budget deficits, by cutting spending and hiking taxes, as well as frail banking systems.\" \"While this consolidation is needed, there is no question that it is weighing on demand,\" it said. But the effect is to add to homegrown weaknesses in developing countries by generating uncertainty among investors and slowing trade overall. The Fund measured the fiscal health of 60 member states including the United States, China, Japan, Greece, India and Brazil, and found that about half were on target to bring their budget deficits under pre-financial crisis levels by next year. \"Despite substantial progress in restoring the sustainability of public finances, fiscal vulnerabilities remain elevated,\" the report said. \"Public debt rollover requirements are still very high and expose countries to the vagaries of financial markets,\" it added. IMF chief economist Olivier Blanchard however credited the aggressive monetary easing by the world\'s leading central banks with keeping the global economy going. \"The main force pulling growth up is accommodative monetary policy. Central banks continue not only to maintain very low policy rates, but also to experiment with programs aimed at decreasing rates in particular markets, at helping particular categories of borrowers, or at helping financial intermediation in general.\" The report noted concerns that central bank stimulus efforts, like the US Federal Reserve\'s quantitative easing bond buying program, aimed at forcing long term interest rates lower, are not benefiting the sectors they are aimed at. \"However, large differences in financing conditions do not mean that monetary policy is not working. The actions taken by central banks have forestalled worse outcomes,\" it said, pointing to France and Italy. \"More generally, liquidity provision has prevented a collapse of the banking systems in the (eurozone) periphery economies.\" Blanchard emphasized especially the negative impact of the persistent atmosphere of uncertainty on growth that comes mainly from the problems in the eurozone and United States. \"Alternative risk-off and risk-on episodes, triggered by progress and regress on policy action, especially in the euro area, are triggering volatile capital flows,\" he said. \"If uncertainty could be decreased, the recovery could well turn out to be stronger than currently forecast.\" In Europe, he said, most of the pieces of the solution \"are falling into place.\" \"If the complex puzzle can be rapidly completed, one can reasonably hope that the worst might be behind us.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today risks rising imf cuts global forecast Arab Today, arab today risks rising imf cuts global forecast

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today risks rising imf cuts global forecast Arab Today, arab today risks rising imf cuts global forecast

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Second US judge orders freeze

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Hussein Fahmy happy for honoring in festival

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday