Posted on September 18, 2014 by iMFdirect
By Sweta Saxena
1. Are emerging markets slowing down? Yes. They have been slowing down for some time now. GDP growth has declined from 7 percent during the pre-crisis period (2003-8) to 6 percent over the post-crisis period (2010-13) to 5 percent, in our projections, over the next 5 years (2014-18). This path is illustrated below in Chart 1. This last point stands out. Despite an uneven recovery, growth in advanced economies is projected to eventually recover. Not so for emerging markets.
Filed under: Advanced Economies, Asia, Economic research, Emerging Markets, Finance, Globalization, growth, IMF, International Monetary Fund, Latin America | Tagged: Brazil, Central America, China, commodiity prices, emerging market economies, global trade, Russia, spillover effects, spillover reports, structural reform, Venezuela | Leave a comment »
Posted on May 5, 2014 by iMFdirect
By Romain Duval
(Version in 中文, and 日本語)
In recent decades, trade integration within Asia has increased more than in other regions. In valued-added terms, intraregional trade grew on average by over 10 percent a year from 1990 to 2012, twice the pace seen outside of Asia. Likewise, financial integration within the region has started to catch up, although it still lags behind trade integration. Concomitantly, business cycles in Asia have become steadily more synchronized over the past two decades, with the correlation between ASEAN economies’ growth rates almost reaching the very high levels seen within the Euro Area.
As outlined in the IMF Asia and Pacific Department’s latest Regional Economic Outlook, these facts are related. Namely, increases in trade and financial integration have strengthened the propagation of growth shocks between regional partners, leading Asian economies to move more in lockstep. One driver of this synchronization of business cycles has been the increase in size and connectedness of China’s economy. Looking ahead, we expect regional integration agenda and a bigger China to further increase spillovers and growth co-movement across the region. Greater international cooperation, particularly regional and global financial safety nets, can help countries respond to the associated risk of more synchronized, sharper downturns, and thereby help Asia make the most of greater regional integration.
Filed under: Advanced Economies, Asia, Economic Crisis, Economic research, Emerging Markets, Fiscal policy, growth, IMF, International Monetary Fund, Low-income countries | Tagged: ASEAN, China, euro area, global trade, Korea, Malaysia, Regional Economic Outlook: Asia, spillovers, Taiwan, Thailand | Leave a comment »
Posted on July 19, 2011 by iMFdirect
By Antonio Borges
(Versions in عربي, 中文, 日本語, Español, Français)
It is hard to hold the course in the middle of a storm, but European policymakers need to if they want European integration to succeed. The sovereign debt crisis is a serious challenge, which requires a strong and coordinated effort by all involved to finally put it behind us.
Surviving the storm will be of little consequence if the euro area finds itself trapped in the perpetual winter of low growth. Germany may be expanding at record speed right now, but it wasn’t so long ago when it grew much more slowly—just 1.5 percent per year between 1995 and 2007. In contrast, Sweden grew by 3 percent a year and the United States by 2 percent during the same period.
Many experts fear that without reforms, growth in Germany could drop even lower in the next 5‑10 years and beyond when global trade cools again. The situation is worse in the countries that currently find themselves in the eye of the storm.
Filed under: Advanced Economies, Economic Crisis, Europe, growth, IMF, International Monetary Fund | Tagged: currency union, Economic and Monetary Union, economic crisis, economic integration, equity capital, euro area, euro area Art IV, Europe, European financial stability framework, European Union, financial sector, Germany, global trade, governance, government debt, growth, integration, labor market, policymakers, reforms, sovereign debt, Stability and Growth Pact, structural reforms, surveillance, Sweden | 17 Comments »