19) “World Economy Report 2013 – IMF”

by Javier Carro

Topics: Economy, Frontpage

The IMF (International Monetary Fund), which trimmed its U.S. forecasts slightly, said concerns were rising over a political battle brewing in Washington over how to avoid painful automatic spending cuts and tax increases at the start of next year.

The IMF said while emerging economies, such as China, may no longer be growing at a rapid 10 percent annually, growth in these countries was likely to remain strong.

–          «It is really case by case but in general we think (emerging economies) will be able to increase demand and grow at fairly high rates,» Blanchard said.

Earlier this year, policymakers in emerging economies were worried about large-scale capital inflows and excessive appreciation of their currencies. Now, concerns have shifted to a rapid depreciation and increased volatility in exchange rates. Currencies like the Brazilian real and Indian rupee have depreciated by between 15 and 25 percent in less than a quarter, the IMF noted.

The IMF cut its 2012 growth forecast for China to 8.0 percent from 8.2 percent, and said it now expects growth of 8.5 percent next year 2013, down from 8.8 percent.

It revised its growth projections for India to 6.1 percent this year 2012 from 6.9 percent, and chopped its 2013 forecast to 6.5 percent from 7.3 percent.

Meanwhile, Africa’s growth is still seen at a robust 5.4 percent this year 2012 and 5.3 percent in 2013, as the region remains relatively insulated from external financial shocks.

The IMF said growth in the Middle East will be stronger this year 2012, as key oil-producing countries boost production and Libya’s economy rebounds from conflict in 2011, but it held its forecast for next year 2013 at 3.7 percent. ∎

Leave a Comment Here's Your Chance to Be Heard!