Thursday, October 2, 2014

Lagarde sees dark clouds on the horizon of the world economy – Reuters

Lagarde sees dark clouds on the horizon of the world economy – Reuters

                 
                 


 
                         

Six years after the financial crisis that began in the United States, the world economy is still weak, with high levels of debt and unemployment.


                     


                         Moreover, as said the director of the IMF, Christine Lagarde, no threatening clouds darken the sky of the world economy, as weak growth over a long period of time. Ie, a phase of “mediocre growth.” In his speech this Thursday on global challenges, Lagarde stressed that, at this time, the world economy is weaker than anticipated just six months ago. The intervention Lagarde, who spoke at Georgetown University, comes a week before the release of new indicators, which, predictably, but not very encouraging.

There is, of course, there are different cases, with developing economies and emerging (such as China) to lead growth, although the pace tends to slow down. Among the developed economies recovery has been stronger in the USA and UK, followed by Japan, while the eurozone finds itself a weak recovery, with cases of high unemployment and the risk of deflation.

Among the threats on the horizon is also the financial system, “shadow”, ie one that is not regulated, and has been growing, and the excesses of the sector. Then there are the geopolitical risks in areas such as Ukraine, and a possible further spread of the Ebola virus. To avoid the “new poor”, it is necessary, says Lagarde, a new “ Momentum “, with public investment in infrastructure and structural reforms in areas such as work, although highlight that economic policies have be designed according to the characteristics of each country.


 
                     
                 

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