Global Economy Continues To Improve (Associated Press)
The world’s top finance officials say the global economy is recovering, and they’re hopeful that well-run economic programs will avoid the risks that threaten that rebound. The 188-nation International Monetary Fund concluded talks Saturday with pledges to work toward faster growth that will alleviate still-high unemployment. Managing Director Christine Lagarde told reporters that the world had gone through a lengthy economic “disaster” and now was moving through a period of strengthening growth.
Finance Ministers: Economy Stronger but Fragile (ABC News)
The world’s top financial officials say they believe the global economy is strengthening but that growth remains fragile and open to risks of new geopolitical strife, as in Ukraine.
Rich countries have been helping power the recovery led by the United States and Britain, and the eurozone and Japan are doing better. However, there has been some slowing in major emerging markets such as China even though these economies have been powering along at growth rates ahead of developed nations. Many countries still are experiencing painfully high unemployment rates with millions looking for work.
The conclusion of discussions Saturday at the International Monetary Fund and its sister institution the World Bank ended three days of talks that began with meetings by finance ministers of the Group of 20 nations, the mix of traditional economic powers such as the United States, Japan and Germany and emerging economies such as Brazil, India and China. “Creating a more dynamic, sustainable and job-rich global economy remains our paramount collective goal,” the policy-setting panel of the 188-nation IMF said in a closing communique. Read full article.
Raising World Economy’s Speed Limit Emerges as Challenge (Bloomberg News)
Global finance chiefs are trying to soup up their crisis-hit economic engines.
How to do so was a theme of weekend talks of the International Monetary Fund’s spring meetings in Washington as economists from JPMorgan Chase & Co. estimate the financial crisis and subsequent world recession knocked the potential growth rate of rich countries down to about 1.5 percent from 2 percent.
Such a decline in the speed limit of the growth rate at which inflation ignites is troubling because it risks pressuring central banks to raise interest rates sooner than they might otherwise want. The weaker potential also hurts the ability of businesses to boost profits, workers to win pay increases and governments to cut debts. Read full article.
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