Posted on October 31, 2013 by iMFdirect
By Antoinette M. Sayeh
When meeting with people outside Africa, I’m often asked whether Africa’s growth takeoff since the mid-1990s has been simply a “commodity story”—a ride fueled by windfall gains from high commodity prices. But finance ministers and other policymakers in the region, and I was one of them, know that the story is richer than that.
In this spirit, in our latest Regional Economic Outlook: Sub-Saharan Africa a team of economists from the IMF’s African Department show that Africa’s continued success is more than a commodity story. In fact, quite a few economies in the region have become high performers without basing their success on natural resources—thanks in no small part to sound policymaking.
Filed under: Africa, Economic outlook, Economic research, Emerging Markets, Employment, Financial Crisis, growth, IMF, International Monetary Fund, Low-income countries | Tagged: agriculture, commodity prices, emerging market, Ethiopia, fiscal space, Mozambique, natural resources, regional economic outlook, Regional Economic Outlook: Sub-Saharan Africa, Rwanda, Tanzania, ugan, Uganda | 1 Comment »
Posted on June 10, 2013 by iMFdirect
By Antoinette M. Sayeh
Sub-Saharan Africa is the second fastest-growing region of the world today, trailing only developing Asia. This is remarkable compared to the current complicated state of the global economy, with Europe still struggling and the United States slowly on the mend.
In 2012, Sub-Saharan Africa maintained solid growth, with output growth at 5 percent on average. The factors that have supported the region through the Great Recession—strong investment, favorable commodity prices, and generally prudent macroeconomic management—continued to be at play.
Filed under: Africa, Economic Crisis, Economic outlook, Emerging Markets, Employment, Financial Crisis, Français, growth, International Monetary Fund, Low-income countries | Tagged: Democratic Republic of Congo, Ethiopia, Ghana, growth, investment, jobs, Malawi, regional economic outlook, Sub-Saharan Africa, Tanzania, unemployment | 1 Comment »
Posted on June 17, 2012 by iMFdirect
By Gustavo Adler and Camilo E. Tovar
(Version in Español)
Latin America has a long history of accidents that have occurred while navigating turbulent financial international waters. With risks looming over the world economy, should the region worry about new global financial waves?
Global financial markets have seen frequent bouts of severe stress since 2008, although this isn’t really anything new for the region. Global financial shocks have occurred on average every 2½ years since 1990, with significant effects on Latin America.
But how costly are these shocks in terms of domestic output, and is Latin America better placed to cope with them this time?
In Chapter 3 of the IMF’s latest Regional Economic Outlook: Western Hemisphere, we analyze whether changes in underlying fundamentals have made the region more or less vulnerable over time. The analysis, which complements our work on the effects of terms-of-trade shocks, looks at what country features and policies make a difference. We focus here solely on the impact of the financial shocks by isolating the effect from commodity prices and global demand shocks.
Filed under: Economic Crisis, Economic outlook, Economic research, Emerging Markets, Employment, Español, Financial Crisis, Globalization, growth, Investment, Latin America, Politics | Tagged: boom and bust, Brazil, Camilo E. Tovar, exchange rate, financial integration, Gustavo Adler, Latin America, Mexico, regional economic outlook, shock, simulations, terms of trade, Western Hemisphere | 2 Comments »
Posted on May 29, 2012 by iMFdirect
By Gustavo Adler and Sebastián Sosa
(Version in Español)
The risks that policies and shocks in major economies can spillover on other countries and regions have become a matter of renewed concern since the global crisis of 2008–09. Brazil is South America’s giant; how important is its influence on neighboring countries?
Brazil accounts for 60 percent of South America’s output and its economic fluctuations are closely correlated with those of many of its neighboring countries. This would appear to suggest that economic activity in Brazil’s neighbors is strongly influenced by Brazil’s business cycle.
But these close comovements could also reflect common global factors that affect all South American countries similarly, such as commodity prices, international financial conditions, and global demand.
Our latest Regional Economic Outlook: Western Hemisphere examines this question, quantifying the importance of spillovers from Brazil to the rest of South America.
Filed under: Economic outlook, Economic research, Emerging Markets, Employment, Español, Finance, Globalization, growth, IMF, Inequality, International Monetary Fund, Investment, Latin America, Politics | Tagged: Andes, Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Gustavo Adler, Mercosur, Paraguay, Peru, regional economic outlook, Sebastián Sosa, shocks, South America, Southern Cone, spillovers, transmission, Uruguay, Venezuela | 2 Comments »
Posted on October 20, 2010 by iMFdirect
By Ajai Chopra
Almost unnoticed, amid the difficulties in western Europe, the other half of the continent has begun to recover from the deepest slump in its post-transition period. The emerging economies in central and eastern Europe will grow by 3¾ percent this year and next—a relief after the 6 percent decline in 2009.
Why was the crisis so severe—and how do we avoid a repeat? We consider just that question in our fall 2010 Regional Economic Outlook: Europe. While the crisis was triggered by external shocks, it is clear that domestic imbalances and policies also played a key role. Continue reading
Filed under: Economic Crisis, Emerging Markets, Europe, Financial Crisis, International Monetary Fund | Tagged: asset price bubbles, balance sheets, bank credit, boom-bust cycle, capital inflows, cooperation, credit boom, economic imbalances, economic rebalancing, emerging Europe, fiscal policy, fixed exchange rates, prudential regulation, regional economic outlook, Regional Economic Outlook: Europe | 12 Comments »
Posted on July 9, 2010 by iMFdirect
By Anoop Singh
Asia’s leadership of the global economic recovery is continuing unabated. And, even though heightened risks mean there may be tough times ahead again, the region is well equipped to handle them.
Asia’s remarkably fast recovery from the global financial crisis continued in the first half of 2010, despite the recent tensions in global financial markets. In fact, GDP growth in the first quarter was generally stronger than we anticipated in our Regional Economic Outlook in April. And high-frequency indicators suggest that Asian economic activity remained brisk in the second quarter. Even more notable, this is true both for economies that escaped a recession in 2009, thanks to their relatively larger domestic demand bases (China, Indonesia, and India), and for the more export-oriented economies such as Japan, the Newly Industrialized Economies (NIEs), and the rest of the ASEAN.
Two growth engines
What explains the strong economic momentum across the region? It is simple. The two “engines of growth” that spurred Asia’s recovery in 2009— exports and private domestic demand—have remained robust in 2010.
Filed under: Asia, Economic Crisis, Emerging Markets, Financial Crisis, Fiscal Stimulus, growth | Tagged: ASEAN, Asia, Australia, capital flows, China, domestic demand, exports, Fiscal Stimulus, global economy, India, Indonesia, International Monetary Fund, Japan, New Zealand, policy stimulus, private domestic demand, regional economic outlook, World Economic Outlook | Leave a comment »