Christine Lagarde: politics weighs on economy: Speaking at the seminar Challenges to Global Economy, the head of the International Monetary Fund confirmed that the world economy moved at weaker pace than it was forecasted earlier. Market participants expected that this statement would be followed by a downward revision of the forecasts. According to Christine Lagarde’s report, a significant slowdown in the world economy is observed currently. Forecasts made more than six months ago lose their relevance in nowadays realities. Considering these circumstances, the IMF is forced to make adjustments to earlier GDP estimates expecting a slight economic growth increase. Thus, a considerable difference between some regions and countries was separately noted. The USA and Great Britain managed to keep the highest rates followed by Japan. The weakest values were logged in the euro area but there is a noticeable difference among the European states. About 80 percent of the GDP global economy growth over the last 5 years was logged in developing countries. We expect that the Asian countries, especially China, will continue to be one of the world growth drivers. However, developing countries recently showed a weaker dynamics than it would be expected. If to summarize the current situation, then 6 years later from the beginning of the financial crisis the world economy shows rather weak growth rates, Christine Lagarde reports. The special attention was paid to a complex geopolitical situation. In particular, it is referred to a potential escalation of the conflict in Ukraine which can lead to serious breakdowns in materials sector, financial markets, as well as in trade. The situation in the Middle East and some Asian regions is also quite disturbing. And, finally, the Ebola epidemic in Africa also poses a significant threat but only at the regional level so far. However, potentially it can become a serious problem on a global basis in case coordinated actions are not been taken and the epidemic does not get out of hand.The material has been provided by portal MT5 - mt5
Posted on: Tue, 28 Oct 2014 11:22:09 +0000
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