Posted on May 24, 2016 by iMFdirect
By Sonali Jain-Chandra, Kalpana Kochhar and Tidiane Kinda
Versions in 中文 (Chinese), 日本語 (Japanese)
Asia continues to be the world’s growth leader, but the gains from growth are less widely shared than before. Until about 1990, Asia grew rapidly and secured large gains in poverty reduction while simultaneously achieving a fairly equitable society. Since the early 1990s, however, the region has witnessed widening income inequality that has accompanied its robust expansion—a break from its own remarkable past.
This matters because elevated levels of inequality are harmful for the pace and sustainability of growth. What can be done? Our research finds that policies could substantially reverse the trend of rising inequality. In particular, given limited social safety nets, well-designed fiscal policies may be able to alleviate inequality without stifling the region’s wealth-creating growth.
Filed under: Asia, China, Emerging Markets, Employment, Fiscal, Fiscal policy, Government, growth, IMF, India, Inequality, International Monetary Fund, Investment, Reform | Tagged: China, fiscal policy, IMF, iMFdirect, income inequality, India, inquality, International Monetary Fund, investment, unemployment | Leave a comment »
Posted on May 12, 2016 by iMFdirect
By Serkan Arslanalp, Thomas Helbling, Jaewoo Lee, and Koshy Mathai
Version in 中文 (Chinese)
China’s economy leaves nobody indifferent. The world is watching closely as the second largest economy in the world is shifting its growth model from an export-driven one to one centered on household consumption. As China’s economy slows and rebalances, its impact is being felt on an already fragile global economy, and particularly in the rest of the Asia region. Our recent studies show that while China’s rebalancing will adversely affect some Asian economies, it will also open opportunities for several others.
Filed under: Asia, China, Financial markets, growth, IMF, International Monetary Fund, Investment, technology, trade | Tagged: ASEAN, Asia, China, commodity prices, economic rebalancing, financial markets, Hong Kong, IMF, International Monetary Fund, Japan, New Zealand, Taiwan, trade | Leave a comment »
Posted on April 19, 2016 by iMFdirect
Public capital—road, bridges, electricity—can make countries richer by attracting more investment and building economic growth at a time when many are struggling with low growth. Many economists would argue public investment projects in highly efficient countries tend to have a greater impact on growth. New research by IMF economists shows that’s not necessarily the case. Continue reading
Filed under: Advanced Economies, Africa, Asia, Caribbean, China, Economic research, growth, IMF, International Monetary Fund, Latin America, LICs, Low-income countries | Tagged: Andy Berg, infrastructure, public spending | Leave a comment »
Posted on March 10, 2016 by iMFdirect
By Rahul Anand and Paul Cashin
After being low for decades, inflation in India trended higher from the mid-2000s. It reached 10–11 percent by 2008, and remained elevated at double digits for several years. Even though inflation fell by almost half in 2014, inflation expectations have remained high.
High and persistent inflation in recent years has presented serious macroeconomic challenges in India, increasing the country’s domestic and external vulnerabilities. As Reserve Bank of India Governor Raghuram Rajan pointed out at the 8th R.N. Kao Memorial Lecture in 2014, “inflation is a destructive disease … we can’t push inflation under the carpet as a central banker. We have to deal with it.”
Filed under: Asia, Emerging Markets, IMF, Inequality, inflation, International Monetary Fund, LICs | Tagged: demand, food prices, food supply, growth, households, IMF, India, inequality, inflation, International Monetary Fund, Reserve Bank of India | Leave a comment »
Posted on February 17, 2016 by iMFdirect
By Andrea F. Presbitero and Min Zhu
(Versions in 中文 (Chinese), Français, and Português)
Many low-income developing countries have joined the group of Eurobond issuers across the globe— in sub-Saharan Africa (for example, Senegal, Zambia, and Ghana), Asia (for example, Mongolia) and elsewhere, raising over US$21 billion cumulatively over the past decade. Tapping these markets provides a new source of funds, but also exposes borrowers to shifts in investor sentiment and rising global interest rates.
Filed under: Africa, Asia, Emerging Markets, IMF, International Monetary Fund, Low-income countries, Public debt | Tagged: Asia, bond spreads, capital inflows, emerging markets, eurobond, exchange rates, financial markets, foreign reserves, GDP, IMF, iMFdirect, International Monetary Fund, low-income countries, public debt, public investment, Sub-Saharan Africa | Leave a comment »
Posted on February 9, 2016 by iMFdirect
By Elva Bova, Marta Ruiz-Arranz, Frederik Toscani, and Elif Ture
(Version in Español)
Budgets can be full of surprises. And not always good ones. Often times, debt increases significantly because an unforeseen obligation materializes. These contingent liabilities, as they are known in the economist’s jargon, can have significant economic and fiscal costs. In fact, on many occasions, large and unexpected increases in debt across the world were due to the materialization of contingent liabilities. That is why they are often called hidden deficits.
Filed under: Asia, Economic Crisis, Financial Crisis, Fiscal, IMF, International Monetary Fund | Tagged: Asia, Asian crisis, bailouts, contingent liabilities, deficits, Europe, GDP, global financial crisis, Greece, growth volatility, public-private partnerships | Leave a comment »