Sunday, September 4, 2016

IMF paints a bleak picture of the global economy – German Economic News

The IMF admits that the crisis of the world economy is likely to take some considerable time. Obviously the excesses of the central banks are not sustainable. On citizens’ adjustments and changes “would be.

The International Monetary Fund (IMF) warns of the G20 summit in Hangzhou, China in the face of crises and the lack of willingness to reform before a bout of weakness in the global economy. “The latest data show subdued activity, less growth in trade and a very low inflation, suggesting an even weaker global economic growth this year,” the fund said in a posting on Thursday report for the G20 leaders.

2016 will be the fifth consecutive year in which global growth will be below the average of 3.7 percent from 1990 to 2007 said IMF chief Christine Lagarde. “The political pendulum currently tends towards economic liberalization. Without strong political countermeasures the world could suffer a disappointing growth long. “

The aim of the G20 Summit of Brisbane in 2014, to control within five years the global economy at a two percent higher growth path is, without additional measures in many countries out of reach. Europe is also particularly strained because of uncertainties after the Proposed referendum on United Kingdom membership of the European Union-vote of the British.

“In the longer run, the outlook remains disappointing,” the IMF warned. Given the diverse growth risks he urged the major developed and emerging economies of the G20 to a “vigorous, comprehensive and well-communicated policy”. Part thereof must be closer cooperation on a worldwide basis. The governments need to convey their policies better.

This is especially important for the citizens, zukämen on the adjustments and changes. The Fund sees growing fears about globalization and reforms. This was also due to social inequalities in many countries. This could result in a negative downward spiral to the detriment of free trade and structural reforms.

Here are just structural reforms a key means to strengthen global economic growth. In countries with still weak demand monetary and fiscal policy should intervene more to promote growth. In regions where the monetary policy had exhausted their travels extensively, it was up to the fiscal policy to become more active. In addition, should countries that had the scope for worry about additional public investment and fiscal stimuli for a stronger recovery in economies.

The signs of a slowdown in growth are increasing now. On Thursday there was surprisingly maue numbers of industrial and construction in the United States. The industry shrank unexpectedly in August and the purchasing managers’ index fell to the previous month by 3.2 points to 49.4 meters, as from a company survey of the Institute for Supply Management (ISM) is apparent. The barometer is now below the growth threshold of 50 points. Economists had only expected a decline to 52.0 points. The companies recorded falling orders and built reinforced jobs from. “The numbers disappoint and interest rate expectations are likely to be displaced tend” said Helaba analyst Ulrich Wortberg. To a disappointment it was also used for the construction expenditure. They persisted in July at the level of June, as the Commerce Department announced. Experts however, had an increase of 0.5 percent expected for a growth of 0.9 percent in June. While private builders increased their spending last, these were in the public sector noticeably.

On Wednesday was also known that the world’s seventh largest container shipping company Hanjin to declare bankruptcy in South Korea. Hanjin is the first prominent victim of the downturn in international maritime trade. The Financial Blog Financial market world called the bankruptcy of the shipping company as the first visible sign of a new world economic crisis.

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