Posted on May 24, 2016 by iMFdirect
By Sonali Jain-Chandra, Kalpana Kochhar and Tidiane Kinda
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. Continue reading
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 18, 2016 by iMFdirect
By Pritha Mitra
Version in عربي (Arabic)
Every year, millions of people leave their countries of birth in search of better opportunities abroad. Often, these migrants are among the most talented workers in their home countries. At first glance, this is a loss for the home countries, which invested considerable time and money in educating and developing these people, only to watch them leave. But look again.
Filed under: developing countries, Emerging Markets, Employment, Government, growth, International Monetary Fund, Investment, Migration, refugees, technology | Tagged: Africa, Asia, developing countries, diaspora, emerging economies, Europe, GDP, governments, growth, IMF, India, International Monetary Fund, jobs, Latin America, Middle East, Migration, refugees, remittances, United States | 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 May 11, 2016 by iMFdirect
By Yan Carrière-Swallow and Bertrand Gruss
(Versions in Español and Português)
Falling global commodity prices and the normalization of monetary policy in the United States have contributed to widespread currency depreciations in Latin America. In theory, a falling currency is expected to create inflation by driving up the price of imported goods and services—triggering what economists call exchange rate pass-through.
Filed under: Advanced Economies, banking, inflation, International Monetary Fund, Latin America | Tagged: advanced economies, central banks, Diálogo a Fondo, exchange rate pass-through, exchange rate regimes, IMF, inflation, inflation targeting, infrastructure, International Monetary Fund, Latin America, monetary policy, wages | Leave a comment »
Posted on May 5, 2016 by iMFdirect
By Rahul Anand, Kalpana Kochhar, and Saurabh Mishra
The expansion of India’s exports of services between 1990 and 2013 has been nothing short of spectacular, putting India on a par with the world’s high-income economies in terms of service-product sophistication and as a share of total exports. This has created unique opportunities for continued growth. By contrast, when it comes to exports of manufactured goods, India has lagged behind its emerging-markets peers, both in quality and as a percentage of the total export basket, leaving substantial room for improvement.
Filed under: Advanced Economies, developing countries, Emerging Markets, India, International Monetary Fund, trade, U.S. | Tagged: advanced economies, East Asia, emerging markets, exports, IMF, iMFdirect blog, India, International Monetary Fund, low-income countries, Middle East, trade | Leave a comment »
Posted on April 26, 2016 by iMFdirect
By James Daniel, José Garrido, and Marina Moretti
Version in 中文 (Chinese)
China’s high and rising corporate debt problem and how best to address it has received much attention recently. Indeed, corporate debt in China has risen to about 160 percent of GDP, which is very high compared to other, especially developing, countries.
The IMF’s April 2016 Global Financial Stability Report looked at the issue from the viewpoint of commercial banks and resulting vulnerabilities. Its analysis suggests that the share of commercial banks’ loans to corporates that could potentially be at risk has been rising fast and, although currently at a manageable level, needs to be addressed with urgency in order to avoid serious problems down the road. Indeed the success in addressing this issue is important for China’s economic transition and, given its size and growing global integration, the world’s economy at large.
Filed under: China, developing countries, Economic research, Finance, IMF, International Monetary Fund, unemployment | Tagged: bank credit, capital, China, credit, debt restructuring, developing countries, IMF, International Monetary Fund, Labor, nonperforming loans, NPLs, structural reform | Comments Off on Tackling China’s Debt Problem: Can Debt-Equity Conversions Help?
Posted on April 7, 2016 by iMFdirect
By Carla Grasso
Versions in: عربي (Arabic), 中文 (Chinese), Français (French), 日本語 (Japanese), Português (Portuguese), Русский (Russian), and Español (Spanish)
If there’s one thing all economists can agree on, it’s the importance of numbers. Without good data, it is difficult to assess how an economy is performing and formulate smart policies that help improve lives. Continue reading
Filed under: Africa, IMF, International Monetary Fund, technology | Tagged: Africa, capacity building, Cape Verde, East Africa, IMF, iMFdirect, International Monetary Fund, Mauritius, Mozambique, senegal, Seychelles, Sub-Saharan Africa, Tanzania, technical assistance | Leave a comment »