arabtoday
Last Updated : GMT 05:52:34
Arab Today, arab today
Arab Today, arab today

IMF cuts 2013 global growth forecast

Arab Today, arab today

Arab Today, arab today IMF cuts 2013 global growth forecast

Washington - AFP

The International Monetary Fund on Tuesday cut its global economic growth forecast, citing new downside risks in key emerging-market economies and a deeper recession in the eurozone. The IMF projected the world\'s economy would grow 3.1 percent in 2013, down from its April estimate of 3.3 percent. China and other emerging economic powers now face new risks, it warned, \"including the possibility of a longer growth slowdown.\" The global lender said that growth had been affected by increased financial market volatility and rising interest rates in advanced economies since its last World Economic Outlook report was published in April. \"Emerging-market economies have generally been hit hardest,\" the Fund said in its update of the WEO report. The expected US Federal Reserve\'s unwinding of its massive monetary policy stimulus could trigger sustained capital outflows from emerging-markets, the IMF warned. \"Monetary easing can be the first line of defense against downside risks\" in emerging-market and developing economies, where inflation was generally expected to moderate, it said. But fiscal policy options may be limited. \"Real policy rates are low already, and capital outflows and price effects from exchange rate depreciation may also constrain further easing,\" the Fund said. Growth in the emerging-market and developing economies was expected to slow to 5.0 percent in 2013, instead of the 5.3 percent expansion seen a few months ago. The main impact was being seen on the top emerging market economies, the \"BRICS\" -- Brazil, Russia, India, China, and South Africa. \"After years of strong growth, the BRICS, to call them that way, are beginning to run into speed bumps,\" said IMF chief economist Olivier Blanchard. China, the world\'s second-biggest economy and a main engine of global growth, would expand by 7.8 percent, three-tenths of a point slower than thought. The forecast for Russia was slashed by 0.9 points to 2.5 percent, and South Africa was cut 0.8 point to 2.0 percent. Lower prices were also curbing growth in commodity exporters. Crude oil prices were expected to fall 4.7 percent, while non-oil commodity prices were projected to decline 1.8 percent. Some of Sub-Saharan Africa\'s largest economies, such as Nigeria and South Africa, face weaker growth in part due to weaker external demand, while in the Middle East and North Africa, growth remains weak \"because of difficult political and economic transitions,\" the IMF said. Meanwhile, combined growth in the advanced economies was estimated at 1.2 percent, down a tenth point from the prior estimate. The recession in the eurozone was deeper than expected, the IMF said, citing a toxic combination of low demand, depressed confidence, weak balance sheets and the impact of tight fiscal and financial conditions. The IMF predicted a 0.6 percent contraction in the 17-nation eurozone, down two-tenths of a point from the April estimate. US growth was weakening under pressure from government spending cuts that offset improving demand in the private sector, notably from a recovery in the housing market. Growth in the world\'s largest economy was trimmed by two-tenths of a point to 1.7 percent. Japan\'s growth outlook was upgraded by a half-point to 2.0 percent, with the IMF citing the impact of the Bank of Japan\'s huge stimulus efforts. But overall, the IMF was somewhat gloomy, saying threats to growth continue to cloud the future. It called on advanced economies to take additional measures to bolster their defenses, citing the need for the United States to not let politics interfere with a timely, necessary increase in its official borrowing ceiling to avoid a spending crunch. It also said euro area governments need to \"do what it takes\" to bring back growth and reverse \"financial fragmentation.\" Blanchard noted worries about the banking sector of the eurozone, and how that was casting a cloud over the region\'s economy. \"There are doubts over the state of banks. Whether these doubts are justified or not, it is clear that there is a need for an assessment of the quality of the balance sheets,\" he said. \"If it\'s found out that some banks are not as healthy as hoped, there has to be money to recapitalize them.\" The IMF said that generally, all major economies need to undergo structural reforms to spur growth and support global rebalancing. \"This implies measures to sustainably raise consumption (China) and investment (Germany) in surplus economies as well as measures that improve competitiveness in deficit economies,\" it said.  

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imf cuts 2013 global growth forecast Arab Today, arab today imf cuts 2013 global growth forecast

 



Arab Today, arab today
Arab Today, arab today Adidas Originals ‘reinterpreted’

GMT 14:52 2016 Thursday ,01 December

Adidas Originals ‘reinterpreted’
Arab Today, arab today At Milaidhoo Island, Maldives

GMT 08:42 2016 Wednesday ,07 December

At Milaidhoo Island, Maldives
Arab Today, arab today Paris's matchbox apartments

GMT 10:37 2016 Saturday ,24 September

Paris's matchbox apartments
Arab Today, arab today Probe finds coalition 'mistake'

GMT 08:00 2016 Wednesday ,07 December

Probe finds coalition 'mistake'
Arab Today, arab today 'Rookie' Trump must fall into line

GMT 08:02 2016 Tuesday ,06 December

'Rookie' Trump must fall into line

GMT 15:45 2016 Wednesday ,07 December

Britain clamps down on spread betting industry

GMT 15:29 2016 Wednesday ,07 December

Oil firms and carmakers diverge in costly debate

GMT 09:41 2016 Tuesday ,06 December

Japan moves closer to legalising casinos in Tokyo

GMT 17:59 2016 Monday ,05 December

Uproar as Egypt sharply increases customs duties

GMT 14:55 2016 Monday ,05 December

Financial technology industry focus of Bahrain forum
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today The summer school raising aspirations

GMT 12:49 2016 Tuesday ,06 December

The summer school raising aspirations
Arab Today, arab today Vanessa Redgrave makes directing

GMT 10:52 2016 Tuesday ,06 December

Vanessa Redgrave makes directing
Arab Today, arab today Indonesia expands protection

GMT 11:39 2016 Tuesday ,06 December

Indonesia expands protection
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Hyundai allows Saudi journalists

GMT 15:14 2016 Thursday ,01 December

Hyundai allows Saudi journalists
Arab Today, arab today Latest Infiniti QX to compete

GMT 13:16 2016 Saturday ,26 November

Latest Infiniti QX to compete
Arab Today, arab today It's a squeeze, but Paris Impressionist

GMT 12:06 2016 Saturday ,03 December

It's a squeeze, but Paris Impressionist
Arab Today, arab today To battle Japanese whaling fleet

GMT 11:53 2016 Monday ,05 December

To battle Japanese whaling fleet

GMT 12:58 2016 Friday ,02 December

Trump, politics on the mind

GMT 13:00 2016 Monday ,05 December

Dubai Women Establishment delegation

GMT 04:15 2016 Thursday ,30 June

World's largest uncut diamond fails

GMT 13:01 2016 Thursday ,01 December

Green groups pressure Spain

GMT 15:59 2015 Wednesday ,27 May

Seoul elevates gardening to high art

GMT 12:39 2016 Saturday ,26 November

Skin patch could help kids

GMT 13:17 2016 Friday ,25 November

Ajman Tourism launches time capsule

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 09:53 2016 Sunday ,15 May

OMEGA official timekeepers
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Powered and Developed by FilmMatters

Copyright © 2016 Arabtoday

Developed by FilmMatters

© 2016 Arabtoday

arabtoday arabtoday arabtoday
arabtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabtoday, Arabtoday, Arabtoday