Posted on December 15, 2014 by iMFdirect
By Gregorio Impavido and Uffe Mikkelsen
(Version in Türk)
Turkey is going through a time of economic transition, with slowing growth that risks the country being caught in a “middle-income trap,” unable to join the ranks of high income economies.
The country grew at 6 percent per year on average in the period 2010-13, with policies supportive of domestic consumption. This has generated a large current account deficit, mostly financed by short-term capital flows. The reliance on consumption at the expense of investment, slow export growth, and sizable investment needs have hurt potential growth, with the economy already growing more modestly. Moreover, Turkey’s low domestic savings and competitiveness challenges have limited investment as well as exports, which have also suffered from the slow growth in Europe.
With current policies, Turkey’s economy is expected to grow only 3.5 percent annually over the next five years. Going forward, the economy must be rebalanced to make it more competitive and to restore output and employment growth.
Filed under: Economic outlook, Economic research, Employment, Europe, Finance, Financial Crisis, Fiscal policy, growth, IMF, International Monetary Fund, Investment, Public debt, Reform | Tagged: Article IV, banking sector, economic rebalancing, Europe, fiscal policy, inflation, Macroeconomic policies, middle income countries, savings, Turkey | Leave a comment »
Posted on April 29, 2013 by iMFdirect
By Anoop Singh
(Versions in 中文 and 日本語)
Emerging economies in Asia have weathered the global financial crisis relatively unscathed and appear to be on track for continued strong growth this year and the next. Perhaps because the region has been doing rather well, policymakers’ concerns have increasingly shifted towards medium-term risks: could growth and fast convergence to living standards in advanced economies—come to an end?
In fact, while the economic performance of emerging economies in Asia remains undoubtedly strong in international comparison, it has already shown signs of gradual weakening.
Filed under: Advanced Economies, Asia, Economic Crisis, Emerging Markets, Financial Crisis, growth, IMF, International Monetary Fund | Tagged: China, IMF, iMFdirect, India, International Monetry Fund, Korea, Labor, middle income countries, reform, Singapore, Taiwan, Thailand, the Philippines | Leave a comment »
Posted on September 7, 2011 by iMFdirect
By Dominique Desruelle
War-torn Iraq, quake-ravaged Haiti, conflict-devastated Sierra Leone. So many countries around the world face the legacy of terrible hardships that have left them scarred and fragile.
Everyone agrees that countries need help to recover from these situations. But it is not easy to come to a shared understanding on what this really takes.
Some have questioned whether the IMF has a meaningful role to play. They argue that engagement in fragile states—countries with weak institutions and infrastructure, internal conflict, and governments that face difficulties delivering core services to the population—should mainly be left to bilateral donors and development institutions.
And they couldn’t be more wrong. Helping a country’s economy to work better—the IMF’s core expertise—is a central building block to move beyond fragile situations and achieve better lives for its citizens. Continue reading
Filed under: concessional lending, IMF, International Monetary Fund, LICs, Low-income countries | Tagged: capacity building, conflict-affected states, Extended Credit Facility, Fostering Engagement with Fragile States, fragile states, IMF, IMF-supported program, iMFdirect, International Monetary Fund, low-income countries, middle income countries, multi-donor trust fund, program design, Rapid Credit Facility, sustainable macroeconomic framework, technical assistance | 1 Comment »