Home
Finance Resources
Investment Planning
Banking
Finance
Stock Market
Futures & Options
Trading
Mutual Funds
Insurance
Taxation
Enquire
Home » Finance Current Affairs » IMF Economist: Must Rebalance Global Econ To Sustain Recovery

IMF Economist: Must Rebalance Global Econ To Sustain Recovery

Current Affairs

WASHINGTON -(Dow Jones)- The crisis is receding, but leaving in its wake a damaged global economy that must be rebalanced to achieve strong growth rates again, the chief economist of the International Monetary Fund said Wednesday.

"The recovery has started. Sustaining it will require delicate rebalancing acts, both within and across countries," Olivier Blanchard wrote in an article in the IMF's Finance & Development magazine.

"The turnaround will not be simple. The crisis has left deep scars, which will affect both supply and demand for many years to come," he said.

Warning the crisis has lowered the growth potential of the world economy and sparked unsustainable government spending levels, Blanchard said there must be a shift toward more reliance on demand from the private sector and from countries outside the U.S.

Pushed up by stimulus packages, debt levels in Group of 20 advanced economies are projected to exceed 100% of gross domestic product on average in the next few years, he said.

"The stimulus can be prolonged if, at the same time, structural measures are taken to limit the future growth of entitlement programs - whether from rising health care costs or from the effect of aging populations on retirement costs," said Blanchard noting that the fiscal cost of future increases in entitlements is estimated at 10 times the fiscal cost of the crisis.

Meanwhile, the fall-off in U.S. consumption, which was the main cause of the global economic slump, is unlikely to be fully reversed, he said.

The U.S. savings rate has jumped to about 5% from close to zero in 2007, and will probably remain around that level, he said, which would mean a 3-percentage-point decline in consumption as a portion ofGDP. While low interest rates could offset some of the impact of lower consumption, higher exports could be an alternative driver of U.S. growth, said Blanchard.



More Current Affairs


put comment
Domain Registration | Windows Hosting | Linux Hosting | Java Hosting | Virtual Dedicated Server | Dedicated Server | Reseller Web Hosting | Unlimited Windows reseller hosting | Unlimited Linux reseller hosting | Cheap Windows reseller hosting | Cheap Linux reseller hosting | Cheap Windows hosting | Best Windows hosting | Windows hosting Multiple Domains | Unlimited Windows hosting | Compare hosting plans | Cheap Linux hosting | Best Linux hosting | Linux hosting Multiple Domains | Unlimited Linux hosting | Cheap asp.net hosting | Best asp.net hosting | unlimited asp.net hosting | Cheap asp.net reseller hosting | Unlimited asp.net reseller hosting | Java Features | Cheap Java hosting | Best Java hosting | unlimited Java Hosting | Unlimited Linux reseller hosting | Java Hosting Multiple Domains| | Matargashti Full Song | Matargashti mp3 Download | Matargashti Video Download | Matargashti Song Tamasha | Prem Ratan Dhan Payo Songs Download | Prem Ratan Dhan Payo Songs mp3 Download | Prem Ratan Dhan Payo Songs Video Download | Pinga Song Download | Pinga Full Song mp3 Download | Pinga Song mp3 Download | Pinga Song Video Download | Latest Bollywood Updates | Bollywood Updates | Prem Ratan Dhan Paayo Songs Download|
© ProfitGuruOnline-2024. All Rights Reserved.