Make reforms while sun shines on world economy: Lagarde

The Trade and Development Report 2013 notesthat developed countries have so far addressed the crisis byimplementing stimulus measures that rely on expansionary monetarypolicies, but these have been unsuccessful in fostering growth, as theyhave been combined with fiscal austerity and subdued private demands.Instead, the report, which was produced by the UNConference on Trade and Development (UNCTAD), argues that governmentsmust addressthe fundamental causes of the crisis, in particular risingincome inequality, the diminishing role of the States, and thepredominant role of the poorly regulated financial sector. In contrast, developing countries have been able to mitigate theadverse impact of the crisis in the developed…... [read more]

HONG KONG: France said there was "no crisis" in the world economy as a meeting of G20 officials kicked off Friday (Feb 26), despite warnings from the International Monetary Fund that the global recovery risked being derailed.Speaking in Hong Kong en route to the meeting in Shanghai, French Finance Minister Michel Sapin said the global economy faced a series of difficulties but described them as "surmountable" and warned against overreaction to current problems.The G20 meeting takes place against a backdrop of economic turmoil, with the IMF citing China's faltering economy, falling oil and commodity prices and financial market turbulence as…... [read more]

GENEVA: The world economy, stunted by years of austerity and growing inequality, needs a global "New Deal", inspired by policies that helped Europe rebound after World War II, the UN said on Thursday (Sep 14)."The world economy remains unbalanced in ways that are not only exclusionary, but also destabilising and dangerous for the political, social and environmental health of the planet," said the UN development agency, UNCTAD."What is urgently needed now is a global new deal," the agency said in its flagship Trade and Development Report.The original New Deal, launched in the United States in the 1930s in response to…... [read more]

Speaking on the sidelines of the G20 meeting of leading world economies in Chengdu, China, Philip Hammond told Sky that the vote to leave the EU was "not the only shadow the world economy faces"."There is going to be uncertainty about the outcome hanging over the world economic outlook for perhaps the next couple of years," Hammond said."At the same time there are very exciting opportunities opening up with China, with Australia, with India, and with many other countries" once Britain has withdrawn from the EU, he said.Asked by the BBC if he could envisage a free trade deal with…... [read more]

U.S. President Barack Obama said on Saturday (July 9) he expected Britain to go through with leaving the European Union after last month's referendum and was concerned to limit the damage to the British, European and global economies from the move."I think we have to assume that a referendum, having been passed with a lot of attention, a lengthy campaign and relatively high participation rates, is going to stick and that the incoming government, a Conservative government, is going to invoke Article 50 and begin the process of negotiations. How that process unfolds, how the negotiations work, I think is…... [read more]

Prime Minister Nguyen Tan Dung paid an official visit to Italy on January 25 at the invitation of chairman of the Ministers’ Council of Italy, Romano Prodi, and the Council of the World Economic Forum (WEF). Italy and he is also the first Vietnamese Government leader to take part in the WEF. Therefore, the visit marks an important milestone in Vietnam-Italy relations, relations between Vietnam, the WEF and international friends as a whole. Italy is one of the most dynamic countries in the European Union. In recent years, Italy’s economy has achieved high growth rate. In 2005 alone, the country’s…... [read more]

ISE-SHIMA, Japan: Pumping up the world economy is an "urgent priority" G7 leaders said Friday (May 27), but left the door open for a go-your-own-way approach in a sign of lingering divisions over how to boost growth.Wrapping up their meeting in rural Japan, the leaders of the Group of Seven endorsed a pick-and-mix approach to dealing with the malaise that has lingered since the global financial crisis struck in 2008."Global growth is our urgent priority," the G7 said in a final statement."Taking into account country-specific circumstances, we commit to strengthening our economic policy responses in a cooperative manner and to…... [read more]

WASHINGTON – Failure to raise the US borrowing ceiling due to political deadlock could force most of the leading industrial democracies into recession, the Organisation for Economic Co-operation and Development has said. Nine days into a partial shutdown of the US government, the OECD, which groups 34 leading developed powers, said that Washington's paralysis over the budget and debt cap threatens the stability of the entire global economy. "The current political deadlock in the United States is needlessly putting at risk the stability and growth not only of the US but also the world economy," the organisation said in a…... [read more]

The world economy has entered a "dangerous new phase," according to the chief economist of the International Monetary Fund. As a result, the international lending organization has sharply downgraded its economic outlook for the United States and Europe through the end of next year. Oliver Blanchard, director of research at the IMF, says economic recovery has "weakened sharply" Photo by BBC The IMF expects the U.S. economy to grow just 1.5 percent this year and 1.8 percent in 2012. That\'s down from its June forecast of 2.5 percent in 2011 and 2.7 percent next year.... [read more]

International Monetary Fund chief Christine Lagarde on Wednesday warned the world was at risk of plunging into "uncertainty and financial instability" and urged Asian economies to be on their guard. International Monetary Fund chief Christine Lagarde in Moscow on November 8, 2011. Speaking at the International Finance Forum in Beijing, Lagarde said Asia was not immune to problems currently sweeping the eurozone, as she began a two-day visit to China likely to focus on the deepening debt crisis in Europe."If we do not act together, the economy around the world runs the risk of a downward spiral of uncertainty, financial…... [read more]