Posts Tagged ‘international monetary fund’

Correction IMF World Economic Growth

March 3rd, 2012

The International Monetary Fund or IMF cut its global growth forecast. The IMF also warned again about the crisis in Europe.

The IMF predicted global activity would slow but not collapse, with the advanced economies fell into recession and growth rates of developing countries began to slow.

On the world economic outlook report issued in January 2012 on Tuesday (1/24/2012), the IMF said growth prospects became bleak since September 2011 and the downside risks have increased as the crisis entered a new phase of the European zone of dangerous.

The IMF cut its global growth forecast in 2012 as much as 0.7 percent to 3.3 percent. This is largely due to the euro zone economy is expected to be towards a mild recession in 2012 due to increased yield, the effects of the banking sector, and the additional impact of fiscal consolidation, according to the IMF report as quoted by Monex Investindo Futures research team in Jakarta, Wednesday (25/1 / 2012).

IMF says, growth in the third quarter of 2011 posisitf ago, including the restoration of supply chain disruption caused by the tsunami in March in Japan, is not expected to be maintained momentum.

IMF estimates the growth rate of the euro zone to contract by 0.5 percent, revised down from 1.6 percent in September. Recent short-term outlook is very deteriorated, according to the report.

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Posted in Economic Growth

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Root causes of the crisis and the recession that hit many parts of the world

February 1st, 2012

In answering that question, quite a lot of analysts and economists who comment and provide analysis from various viewpoints.

In analyzing the main cause of the financial crisis, many have assumed that the fragility of the economic fundamentals (fundamental economic Fragility) is a major cause of economic crisis. It is, as mentioned by Michael Camdessus (1997), Director of the International Monetary Fund (IMF) in the words of his speech at the Growth-Oriented Adjustment Programmes approximately as follows: “The economy is experiencing inflation that is not guarded, large balance of payments deficits, restrictions sustainable trade, currency exchange levels are not balanced, the interest rate is not realistic, the burden of foreign debt and drainage swells prevailing capital many times, has caused economic difficulties, which eventually will double the country’s economy into the economic crisis “.

This clearly shows that the balance of payments deficit (deficit balance of payment), the burden of foreign debt (foreign debt-burden) are swollen – especially short-term debt, investments are not efficient (inefficient investment), and many other economic indicators have been play an active role in inviting the emergence of the economic crisis. » Read more: Root causes of the crisis and the recession that hit many parts of the world

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Posted in Economic Crisis

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