domingo, 19 de abril de 2015

IMF praises European Union but asks for more on behalf of the global economy

Only the United States, the United Kingdom and India are not sufficient to reflate the world economy. This is a warning from the International Monetary Fund (IMF), which predicts global growth for this year at 3.5 percent. Is a value "mediocre and insufficient", described his own Director-General of the IMF, Christine Lagarde, at a press conference in Washington on the eve of the spring meetings of the organism.

The slowing of emerging countries bucked the previous IMF forecasts. In particular, Latin America, losing for the fourth consecutive year and packing with an estimated growth of only 0.9 percent.

We need policy action to prevent the "new mediocre" from becoming the "new reality".

"The Brazil, for example, is stagnant and the predictions are slightly negative this year. China is slowing and so should continue, even by his own political approach and determination. The Russia's not okay and is in negative territory for obvious reasons, is the fall in the price of oil or the sanctions, "said Lagarde.

Lagarde on oil price decline: more winners than losers, overall a plus for global economy #GlobalEcon

The Director-General of the IMF regretted that the wounds left by the financial crisis have not yet healed in much of the world, but there are positives, stressed: "The macroeconomic risks were reduced. Still exist, but if you look at the positives, we see for example that the u.s. economy is recovering with great force and there are other positive signs as well. In Europe, the United Kingdom is clearly holding up very well. "

In the eurozone, Lagarde acknowledges more positive signs, although show reservations vis-à-vis a performance based only on expansive monetary policies. In recent months, more than a dozen central banks â€" not only Europeans â€" decided to moderate monetary policies to become more competitive the respective economies and thereby avoid deflation.

"The eurozone is also showing signs of recovery. Much more than we had seen before. The Japan is coming out of a small recession and is expected to continue to improve, "predicted the responsible of the IMF.

In relation to Greece, Lagarde has recommended to the Government of Athens to work towards restoring economic stability of the country: "That you can watch, in fact, to the measures (to implement), committing to reforms and in anticipation of the results. This is the boring work of the Finance Ministers, whether they are where they are, and of creditors. "

About the possibility of a postponement of repayment on the part of Athens, Lagarde was clear: "Postponements of reimbursements were never granted by the IMF in the past 30 years (the developed countries). A few developing countries were eventually allowed. But this postponement not led to productive results ". In short, it was a no to the postponement of the deadline for repayment of Greece.

Lagarde on #GlobalEcon: 70% of global growth in 2015 by emerging markets and developing countries. #188together

How to analyze the situation in Europe? Europe out of recession. The eurozone is again growing. This happened, in part, due to the decisive and beneficial impact of the fall in oil prices. But also because of the implemented measures to support the economy. In particular, the supportive approach of the European Central Bank. But this is a moment of opportunity. If Europe step up efforts to support the growth of today and growth tomorrow, I think it can be achieved a much better future. I would like to speak also of Greece. Nobody really knows when that Greece will be the zeroes, without money. The general idea is that it will be soon. Negotiations between creditors and Greece do not reveal any progress and many blame the Greeks. The IMF is part of the process. What is your message to the Greek Government? If we continue to have a dialogue with them, if these negotiations and bolster we reach some sort of agreement on the policies that the Government must follow to solve the problems, then we have opening to free financial resources that will help this imminent liquidity crisis. We're not suggesting that the Government has to solve the problems of Greece on the same line than was the previous Executive. There's a new approach. But we have to know very well what kind of approach will follow (in Athens) and details her as much as possible, to the world, the IMF and Member States (European Union) are assured by the Greece be in fact solve the problem.

Greek bond yields have been soaring this morning: View Greece debt repayment timetable

If You Enjoyed This, Take 5 Seconds To Share It