Posted on May 18, 2011 by iMFdirect
By Antonio Borges
(Versions in Español, Français, Português, Русский)
With all the anxiety generated by the troubles of Portugal, Greece, and Ireland, it is easy to forget that a different part of Europe was in the spotlight two years ago, facing equally dire predictions of bank runs, fiscal ruin, and devaluation.
Today, many economies in emerging Europe are quietly staging a strong comeback. Most impressive is the turnaround in the three Baltic countries, which suffered record deep recessions in the wake of the 2008/09 financial crisis. Take Lithuania, which grew an eye-catching 14.7 percent in the first quarter of 2011. But many other countries in the region are seeing strong growth as well. (more…)
Filed under: Economic outlook, Emerging Markets, Europe, IMF, International Monetary Fund | Tagged: asset price bubbles, boom-bust cycle, capital inflows, consumption, credit default swaps, current account deficits, domestic demand, economic growth, economic output, exports, growth potential, investment, Macroeconomic policies, markets, structural policies | 2 Comments »
Posted on December 3, 2010 by iMFdirect
By Hugh Bredenkamp and Roger Nord
(Version in Français )
For low-income countries, the absence of reliable infrastructure—roads, railways, ports, but also power supply—has become an increasingly binding constraint on growth. And we know that investment in infrastructure can raise productivity, boost growth, and help reduce poverty. But as straightforward as it sounds, getting investment decisions right is no easy feat.
For starters, low-income countries have massive investment needs. The World Bank has estimated that, in sub-Saharan Africa alone, the total financing need is around $93 billion per year. And one third of this still unfunded.
Even when financing is available, there’s a raft of other issues to tackle. What investments offer the biggest boost to growth? How much investment is needed and by whom? How to finance this investment without taking on too much debt? (more…)
Filed under: Economic Crisis, LICs, Low-income countries, Public debt | Tagged: capacity building, debt sustainability, enabling environment, global economic crisis, growth potential, infrastructure, investment strategies, low-income countries, private investment, sustainable investment | 7 Comments »