The International Monetary Fund is likely to lower growth in the world
The International Monetary Fund is likely to lower growth in the world
Wednesday, April 8, 2015 9:47
BAGHDAD / follow Baghdadi News / … IMF announced in a study about the probability of receiving global growth after a big blow 2007-2009 financial crisis, where it likely to stay low for years, what predicts that interest rates will remain low for quite some time.
The study, published on Tuesday evening, and pursued / Baghdadi News / “The potential growth measures the speed that can grow the economy with time without being inhibited by inflationary pressures, have already started to slow down in the rich economies before the financial crisis because of increasing numbers of the population of the elderly, and the decline of technological innovation. ”
The study added that “the declines in direct investment and employment growth has reduced the potential annual growth in those countries to 1.3% between 2008 and 2014, down half a percentage point from what it was before the crisis.”
The study sets, which come in the context of the global economic outlook by the Fund issued twice a year, the framework of discussions on ways to promote growth when moving policy makers from around the world to Washington next week, to attend the spring meetings of the IMF and the World Bank.
In a related development, the Fund has predicted that over the next 5 years, will increase the potential annual growth of advanced economies to 1.6%, but it will still be much lower than the pre-crisis growth rates, making it difficult to reduce public debt and private highs.
In emerging markets, the potential annual growth fell to 6.5% from 2008 to 2014, down about two percentage points from what it was before the crisis, is expected to come down further to 5.2% over the next 5 years with a high population of elderly people, and the impact of capital growth restrictions structural productivity slowdown.
Finally, the Fund urged rich economies to support demand and investment, including increased funding for research and development and infrastructure.
He said that the emerging economies to promote spending on infrastructure, and work to ease regulatory restrictions and improve the quality of education. Ended 21 / b
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