Posted on December 21, 2015 by iMFdirect
By Wenjie Chen and Roger Nord
(Versions in عربي, 中文, Français, Português, and Español)
China’s President Xi Jinping’s recent pledge of US$60 billion in financial support over the next three years illustrates the depth of the partnership between China and Africa.
However, China’s shift from an investment-heavy, export led growth strategy to an economic model that relies more on domestic consumption has led to a dramatic decline in commodity prices. Lower commodity prices and lower volumes of trade have hit sub-Saharan Africa’s commodity exporters hard. But over the medium term, this shift may offer sub-Saharan African countries the opportunity to diversify their economies away from natural resources, and create jobs for their young populations, provided they pursue the right policies to foster competitiveness and integrate into global value chains.
Filed under: Africa, China, growth, International Monetary Fund, Investment, Transition | Tagged: China, commodities, export diversification, exports, foreign direct investment, IMF, imports, investment, Sub-Saharan Africa, trade | Leave a comment »
Posted on September 2, 2015 by iMFdirect
This year’s IMF Annual Meetings are going on the road…to Lima, Peru. All the big debates will focus on economics, finance, inequality, financial inclusion, emerging markets, commodities and many more.
Since you’ve been reading gossip magazines at the beach busy this summer, we thought you might like a handy refresher on some of our blogs in recent months about Latin America.
Filed under: Annual Meetings, Economic outlook, Economic research, Emerging Markets, Español, Financial Crisis, Fiscal policy, Globalization, growth, IMF, Inequality, International Monetary Fund, Investment, Latin America | Tagged: Annual Meetings, Caribbean, commodities, emerging market, inequality, Latin America, Peru | Leave a comment »
Posted on May 12, 2015 by iMFdirect
By Nicolás Magud
(Versions in Español and Português)
Private investment has been decelerating throughout emerging markets since mid-2011, and Latin America has been no exception (see Chart 1). This trend has raised concerns not only because weaker investment has played an important role in the broader regional slowdown, but also because Latin America’s investment rates were lower than in most other regions even before the slowdown began.
This blog looks at the drivers of corporate investment and highlights the extent to which falling commodity export prices have contributed to lower capital spending. Given the poor outlook for commodity prices and what our analysis suggests, this does not bode well for countries in the region going forward unless they can tackle some of the long-standing obstacles to increase investment.
Filed under: Economic outlook, Emerging Markets, Español, IMF, International Monetary Fund, Investment | Tagged: capital inflows, Caribbean, commodities, commodity exports, domestic saving, emerging market, Latin America, private investment, regional economic outlook | Leave a comment »
Posted on October 25, 2012 by iMFdirect
By Luis Cubeddu and Sebastián Sosa
(Version in Español)
World food prices are on the rise again owing mainly to global weather-related shocks. This has led to concern that the rise could result in higher inflation and hurt the most vulnerable.
Two points to note are that the recent increase in food prices has been less acute than the two previous episodes (in mid-2008 and early 2011), and features important differences across commodities. For example, while the price of soybeans, corn and wheat are up sharply, coffee and sugar prices are down. Market projections suggest that corn, soy, and wheat prices will stay high through end-2012, but then decline gradually as supply conditions normalize.
Filed under: Africa, Economic Crisis, Economic outlook, Economic research, Emerging Markets, Employment, Fiscal policy, Globalization, growth, IMF, Inequality, Investment, Latin America, Politics | Tagged: Brazil, Caribbean, Central America, coffee, commodities, corn, fertilizer, food prices, iMFdirect, inflation, seeds, South America, Southern Cone, soybeans, sugar, wages, wheat | 2 Comments »