Posted on September 8, 2016 by iMFdirect
By Maurice Obstfeld
Versions in: عربي (Arabic), 中文 (Chinese), Français (French), 日本語(Japanese), Русский (Russian), Español (Spanish)
A longstanding challenge for the global economy is the possibility that some countries compete for export markets through artificially low prices. Political leaders and pundits sometimes propose import tariffs to offset the supposed price advantages and exert pressure for policy changes abroad. What proponents often fail to realize is that such tariff policies, while certainly hurting their targets, can also be very costly at home. And surprisingly, the self-inflicted harm can be substantial even when trade partners do not retaliate with tariffs of their own. Continue reading
Filed under: Advanced Economies, Asia, Economic outlook, Employment, IMF, International Monetary Fund, trade, U.S. | Tagged: East Asia, employment, exports, GDP, IMF, iMFdirect, imports, International Monetary Fund, tariffs, trade, United States, World Economic Outlook, World Trade Organization, WTO | Leave a comment »
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 December 21, 2012 by iMFdirect
The planet’s most successful species are the great cooperators: ants, bees, termites, and humans.
In an article in the new issue of Finance & Development magazine, President Bill Clinton shares his experience working with governments, business, and civil society as part of his Clinton Global Initiative.
He says they are making the most progress in places where people have formed networks of creative cooperation where stakeholders come together to do things better, faster and cheaper than any could alone.
Filed under: Advanced Economies, Africa, Asia, Civil Society, Debt Relief, Economic Crisis, Emerging Markets, Employment, Europe, Finance, Fiscal policy, Globalization, growth, IMF, Inequality, International Monetary Fund, Latin America, Middle East, Multilateral Cooperation | Tagged: Africa, agriculture, Bolsa Familia, Brazil, business, business leaders, Canada, capital markets, Clinton Global Initiative, Coca-Cola, Colombia, cooperation, developing countries, domestic food security, Economics, economy, exports, farmers, Fundacíon Carlos Slim, Fundacíon Pies Descalzos, Gap Inc., governments, growth, Haiti, HIV/AIDS, IMF, iMFdirect, imports, infrastructure, International Monetary Fund, investment, Ira Magaziner, Ireland, Latin America, Malawi, mining industry, networks, NGOs, Norway, philanthropists, poverty, President Bill Clinton, private sector, small and medium-sized enterprises, the United Kingdom, tourism, United Nations General Assembly, vocational training | 4 Comments »
Posted on May 30, 2012 by iMFdirect
By Anoop Singh
The sharp reduction in China’s current account surplus over recent years has ignited a flurry of speculation about whether the world’s second largest economy has achieved the fundamental, economic rebalancing which many have been pressing for. That is, rebalancing in terms of reduced dependence on exports, and increasing reliance on the domestic market by boosting consumer demand.
My own opinion is that it is too early to say. True, China’s current account surplus fell to around 2.8 percent of gross domestic product in 2011, from a pre-crisis peak of more than 10 percent in 2007. And while the reduction in China’s current account surplus is welcome news, we remain concerned that these changes may not represent a sustained, downward trend.
One possible sign of a durable turnaround in China’s current account surplus would be a pickup in consumption growth but there is little evidence that consumption is rising as a share of GDP.
Filed under: Asia, Economic Crisis, Economic outlook, Economic research, Emerging Markets, Employment, Financial Crisis, Fiscal policy, growth, Inequality, Investment, Politics, Public debt | Tagged: 12th Five Year Plan, Anoop Singh, Asia, China, consumption, current account, d, domestic demand, energy, exports, GDP. World Economic Outlook, iMFdirect, imports, infrastructure, Japan, Korea, machinery, minerals, surplus | 2 Comments »