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IMF: global economic growth won’t last forever
19.04.2018 17:13 "Agro Perspectiva" (Kyiv) —
While the world economy continues to show broad-based momentum, there may be choppy seas ahead, caused by increasing protectionism or tit-for-tat trade wars, Ukrinform says referring to a new report released this week by the International Monetary Fund (IMF).
It is to be admitted, the new report is titled the World Economic Outlook; it is the IMF semiannual report on the health of the international economy.
«Global growth is projected to soften beyond the next couple of years,» the report runs, explaining that: «Once their output gaps close, most advanced economies are poised to return to potential growth rates well below pre-crisis averages - held back by aging populations and lackluster productivity».
Looking at the largest economies, the report shows growth projections at 2.4% for the EUR area, 1.2% for Japan, 6.6% for China and 2.9% for the United States.
Despite the good near-term news, longer-term prospects are more sobering," Maurice Obstfeld, Economic Counsellor and Director of Research at the IMF, admitted while commenting on the report.
«Advanced economies - which now face the aging populations, falling rates of labor force participation, and low productivity growth - will likely not regain the per capita growth rates they enjoyed before the global financial crisis,» he noted.
«Sound policies can extend the upswing while reducing the risks of a disruptive unwinding,» Obstfeld told. «Countries need to rebuild fiscal buffers, enact structural reforms and steer monetary policy cautiously within an environment that is already complex and challenging,» he summed up.
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