Posted on January 12, 2017 by iMFdirect
By Tao Zhang and Vladimir Klyuev
Versions in: عربي (Arabic), 中文 (Chinese), Français (French), and Español (Spanish)
Low-income countries should build more infrastructure to strengthen growth. A new IMF analysis looks at ways to overcome obstacles.
The clock is now ticking on the 2030 Agenda for Sustainable Development, and while investment—critical to this agenda—has been rising in recent years among low-income countries, weak infrastructure is still hampering growth. Governments need to make significant improvements to lay foundations for flourishing economies: roads to connect people to markets, electricity to keep factories running, sanitation to stave off disease, and pipelines to deliver safe water. Continue reading
Filed under: developing countries, Emerging Markets, growth, IMF, infrastructure, International Monetary Fund, Investment, Low-income countries, Public debt, structural reforms | Tagged: China, concessional lending, developing countries, IMF, iMFdirect blog, inclusive growth, infrastructure investment, Infrastructure Policy Support Initiative, International Monetary Fund, low-income countries, public debt, SDGs, sustainable development Goals, tax reform, telecommunications | Leave a comment »
Posted on October 5, 2016 by iMFdirect
By Vitor Gaspar and Marialuz Moreno Badia
Versions in: عربي (Arabic), 中文 (Chinese), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)
In the midst of the Great Depression, the American economist Irving Fisher warned of the dangers of excessive debt and the deflationary pressures that follow on its tail. He saw debt and deflation as the big, bad actors. Now, their close relatives—too high debt and too low inflation—are still in play, at least for advanced economies.
Filed under: Advanced Economies, China, Economic Crisis, Economic research, Emerging Markets, Fiscal policy, IMF, International Monetary Fund, Public debt, U.S. | Tagged: advanced economies, China, emerging market economies, fiscal policies, fiscal policy, GDP, global debt, growth, IMF, inclusive growth, International Monetary Fund, private debt, public debt, sustainable growth | Leave a comment »
Posted on September 28, 2016 by iMFdirect
By Vitor Gaspar, Maurice Obstfeld and Ratna Sahay
There are policy options to bring new life into anemic economic recoveries and to counteract renewed slowdowns. Our new paper, along with our co-authors, debunks widespread concerns that little can be done by policymakers facing a vicious cycle of (too) low growth, (too) low inflation, near-zero interest rates, and high debt levels.
Filed under: capital markets, Economic research, Fiscal policy, Government, IMF, International Monetary Fund, monetary policy, Reform | Tagged: Christine Lagarde, collective action, economic recovery, fiscal policy, G20, growth, IMF, iMFdirect, inflation, interest rates, International Monetary Fund, Maurice Obstfeld, monetary policy, public debt, Ratna Sahay, Vitor Gaspar | Leave a comment »
Posted on August 4, 2016 by iMFdirect
By John C. Bluedorn and Christian Ebeke
Small businesses could be the lifeblood of Europe’s economy, but their size and high debt are two of the factors holding back the investment recovery in the euro area. The solution partly lies in policies to help firms grow and reduce debt.
Our new study, part of the IMF’s annual economic health check of the euro area, takes a novel bottom-up look at the problem. We analyze the drivers of investment using a large dataset of over six million observations in eight euro area countries, from 2003 to 2013: Austria, Belgium, Germany, France, Finland, Italy, Portugal, and Spain. Continue reading
Filed under: banking, Economic research, euro zone, Europe, Finance, Financial Crisis, IMF, International Monetary Fund, Investment, Public debt | Tagged: Austria, bank financing, banking, Belgium, credit risk, euro area, Europe, Finland, France, Germany, IMF, International Monetary Fund, investment, Italy, leverage, nonperforming loans, Portugal, public debt, small and medium-sized enterprises, Spain | 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 October 27, 2015 by iMFdirect
By Benedict Clements, Kamil Dybczak, and Mauricio Soto
(Versions in 中文 and 日本語)
Populations are getting older around the world—that’s no surprise in light of declining fertility and improvements in health care. But in many countries, something more dramatic is going on—the population is actually shrinking. These demographic developments portend stark fiscal challenges. What should countries—whatever their degree of economic development—do to respond to these challenges?
Filed under: Advanced Economies, Economic outlook, Economic research, Emerging Markets, Employment, Financial Crisis, Fiscal policy, IMF, International Monetary Fund | Tagged: economic development, health care, life expectancy, public debt, public finances | Leave a comment »
Posted on May 29, 2015 by iMFdirect
By Petya Koeva Brooks and Gerd Schwartz
The 2008 global financial crisis and its aftermath have tested the European Union’s (EU) fiscal governance framework—the rules, regulations, and procedures that influence how budgetary policy is planned, approved, carried out, and monitored. Given the distinctive nature of EU integration, the framework aims to discipline national fiscal policies to prevent adverse spillovers to other countries and distortions to the conduct of the euro area’s common monetary policy.
The build-up of fiscal imbalances, however, revealed gaps in the framework. Public debt in the European Union soared following the crisis in 2008 to an average of around 95 percent in 2014—almost 30 percentage points above its average pre-crisis level (Chart 1).
Filed under: Advanced Economies, Europe, Finance, Fiscal policy, Global Governance, IMF, International Monetary Fund | Tagged: crisis, debt, EU, euro area, Fiscal Compact, fiscal framework, fiscal policies, imbalances, public debt, Stability and Growth Pact | Leave a comment »