Seven Billion Reasons to Worry: the Financial Impact of Living Longer

Posted on April 11, 2012 by iMFdirect

Everyone wants at some point to stop working and enjoy retirement. In these uncertain economic times, most people worry about their pension. Now take your worries and multiply those several billion times. And the problem is likely bigger still: although living longer, healthier lives is a good thing, how do you afford retirement if you will live even longer than previously thought?

Filed under: Advanced Economies, Economic Crisis, Employment, IMF, International Monetary Fund | Tagged: , , , , , , , , , , , , , , | 12 Comments »

Debt Hangover: Nonperforming Loans in Europe’s Emerging Economies

Posted on March 29, 2012 by iMFdirect

In emerging Europe, the share of loans classified as nonperforming—many of them household mortgages—have exploded from 3 percent before the crisis to 13 percent at the peak. NPLs in some parts of the Baltics and Balkans are already at par with previous financial crises elsewhere. Our analysis finds evidence that nonperforming loans are indeed a serious drag on credit supply and economic growth. They drive up banks’ funding costs and interest margins, and at the same time drain their profits and capital. On the credit demand side, over-extended households and businesses are reluctant to consume and invest.

Filed under: Economic Crisis, Economic outlook, Economic research, Emerging Markets, Employment, Europe, Finance, Financial regulation, Financial sector supervision, IMF, International Monetary Fund, recession | Tagged: , , , , , , , , , , , , | 5 Comments »

Africa’s Growth Puzzle: Better Ways to Fill Infrastructure Gaps

Posted on February 28, 2012 by iMFdirect

The issue of reviving or maintaining economic growth is a the forefront of policymakers’ minds all around the world. Of course, the policies needed to achieve that differ from region-to-region, country-to-country.

For many countries in Africa, weak infrastructure is an obstacle to raising growth.

In a recent interview with the IMF’s Survey online magazine, Andrew Berg of the IMF’s Research Department (and one of our contributing bloggers) discusses how Africa can step up investment in its infrastructure by augmenting traditional sources of financing with foreign borrowing and private investment.

Filed under: Africa, Economic research, growth, IMF, LICs, Low-income countries, recession | Tagged: , , , , , , , , | Leave a Comment »

Get the Basics in Economics from the IMF’s One-Stop Shop

Posted on February 15, 2012 by iMFdirect

The IMF’s Finance & Development magazine has just come out with a useful web compilation of stories in its Back to Basics series on economics. The page is aimed at students, academics, and those seeking a broader understanding of economic ideas. It pulls together articles from the “Back to Basics” column in the quarterly magazine that have been published since 2003.

Filed under: Economic research, Financial regulation, Fiscal policy, growth, IMF, International Monetary Fund, Public debt | Tagged: , , , , , , , , | 4 Comments »

The Impact of the Gloomier Global Outlook on Latin America

Posted on February 10, 2012 by iMFdirect

The IMF has sharply marked down its forecast for world growth and it now expects a mild recession in the euro area. Naturally, weaker world growth will affect economic activity in Latin America and the Caribbean.

Concretely, the Fund expects the world economy to grow by just 3¼ percent in 2012, ¾ percentage points lower than our September forecasts.

In contrast, our forecast for the U.S. economy for 2012 is unchanged, as incoming data signal a stronger—but still sluggish—domestic recovery that will offset a weaker global environment. Commodity prices will be affected by ebbing global demand, with oil projected to fall about 5 percent and non-oil commodities about 14 percent.

Filed under: Economic outlook, Economic research, Español, Financial Crisis, International Monetary Fund, Latin America | Tagged: , , , , , , , , , , , , , , , , | 2 Comments »

Saudi Arabia: a Key Regional and Global Player

Posted on February 8, 2012 by iMFdirect

I leave the Middle East and North Africa region with a sense of hope and resolve to return to the region again soon.

I believe that with determination, the goals of the Arab reform agenda are within reach. Putting such reforms in place will help countries in the region both meet people’s aspirations and help them contribute even more to the rest of the world.

Filed under: Economic Crisis, Global Governance, Multilateral Cooperation, International Monetary Fund, IMF, growth, recession, Europe, Employment, Economic outlook, Middle East, Inequality | Tagged: , , , , , , , , , , , | 2 Comments »

Hope and Perseverance on Tunisia’s Demanding Road Ahead

Posted on February 2, 2012 by iMFdirect

Tunisia is going through an inclusive process of transition, but faces some extraordinary challenges. I have heard from its leaders how Tunisia was the model that paved the way for the Arab Spring, and their firm belief that it remains capable of lighting the path forward for other countries going through historic changes in the region.

Filed under: Economic Crisis, Economic outlook, Employment, Europe, Financial Crisis, growth, IMF, Inequality, International Monetary Fund, Middle East, Public debt, recession | Tagged: , , , , , , , , | 3 Comments »

It’s the Years, Not The Mileage: IMF Analysis of Pension Reforms in Advanced Economies

Posted on February 1, 2012 by iMFdirect

Indiana Jones, the fictional character of the namesake movies, once said “It’s not the years, it’s the mileage.” The quote comes to mind as many advanced economies wrestle with the best way for pension reform to ensure both retirees and governments don’t go broke.

Our view, explained in a new study, is that in fact the years do matter.

Our analysis shows that gradually raising retirement ages could help countries contain pension spending increases and boost economic growth.

Filed under: Advanced Economies, Economic Crisis, Employment, Fiscal policy, IMF, International Monetary Fund, Public debt | Tagged: , , , , , , , , , , , , , , , , | 3 Comments »

Fiscal Adjustment: Too Much of a Good Thing?

Posted on January 29, 2012 by iMFdirect

The IMF has argued for some time that the very high public debt ratios in many advanced economies should be brought down to safer levels through a gradual and steady process. Doing either too little or too much both involve risks: not enough fiscal adjustment could lead to a loss of market confidence and a fiscal crisis, potentially killing growth; but too much adjustment will hurt growth directly.

At times over the last couple of years we called on countries to step up the pace of adjustment when we thought they were moving too slowly.

Instead, in the current environment, I worry that some might be going too fast.

Filed under: Advanced Economies, Economic Crisis, Economic outlook, Economic research, Finance, Fiscal policy, Public debt | Tagged: , , , , , , , , , , , , | 11 Comments »

How to Exit the Danger Zone: IMF Update on Global Financial Stability

Posted on January 24, 2012 by iMFdirect

Many of the root causes of the euro area crisis still need to be addressed before the system is stabilized and returns to health. Until this is done, global financial stability is likely to remain well within the “danger zone,” where a misstep or failure to address underlying tensions could precipitate a global crisis with grave economic and financial consequences.

Filed under: Advanced Economies, Economic Crisis, Emerging Markets, Europe, Financial Crisis, IMF, International Monetary Fund | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 2 Comments »

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