The IMF's latest economic forecast and other economic stories to read
Top economy stories: IMF latest on the global economy; World Bank warning on Asian debt; Argentina raises interest rates to 133%. Image: Markus Spiske - Unsplash
- This weekly round-up brings you the latest stories from the world of economics and finance.
- Top economy stories: IMF latest on the global economy; World Bank warning on Asian debt; Argentina raises interest rates to 133%.
1. The IMF cuts 2024 growth forecasts for the global economy
The International Monetary Fund has kept its global growth forecast for 2023 unchanged at 3%, but has cut its 2024 forecast to 2.9% from 3.0%.
However, the fund did cut growth forecasts for China and the Eurozone. The Eurozone is now forecast to grow 0.7% in 2023 and 1.2% in 2024, down from forecasts earlier this year of 0.9% and 1.5%.
China's forecasts were cut to 5.0% and 4.2% respectively, reductions of 0.2 and 0.3 percentage points.
The US economy's growth prospects were raised by 0.3 percentage points for this year and half a percentage point for next year. It makes the US the only major economy to be ahead of pre-pandemic forecasts.
2. World Bank warns over rising debt in Asia
Growth in Asia could be slowed by rising debt levels in 'seemingly healthy' economies, the World Bank's Chief Economist Indermit Gill has warned in an interview with Reuters.
He warned of the slow pace of debt restructuring in the world's poorest countries, but alongside that issued a warning about debt in Asia specifically.
"We have simultaneous problems: too much debt and too little investment," Gill said. "There's a lot of government consumption and private consumption being financed through debt. There is not a lot of investment being financed through credit, and that's not great."
He didn't warn of debt distress, but potentially the dragging effect on growth in the region. He didn't give specific examples, but recent research shows government debt runs at 85% of GDP in an average South Asian country.
3. News in brief: Stories on the economy from around the world
Egypt's annual urban consumer price inflation hit a historic 38% in September, according to new data from the country's statistics agency.
German industrial output fell in August for the fourth month in a row, reports the federal statistics office.
The UK economy grew 0.2% in August compared to July. However, the July drop was recalculated to be higher than first thought, falling by 0.6% rather than the initial 0.5% estimate.
Canada's economy far exceeded expectations by adding more than 63,000 jobs in September, and wages continued to rise.
US-based think tank Global Energy Monitor has warned that the global energy transition could see the coal industry shed 1 million jobs by 2050.
Argentina's central bank has increased its key interest rate to 133%, a 15 percentage point rise.
Retail inflation in India eased in September, falling to 5.02% from 6.83% in August.
As many as eight African countries need their debt restructuring, an official at the IMF warned this week.
GDP in Singapore rose 0.7% in the period from July to September compared to the same period last year. A Reuters poll had predicted 0.4% growth.
4. More on finance and the economy on Agenda
Capital flow to aid the climate transition is not sufficient, particularly in emerging economics and developing countries. But, blended finance at a national level offers an opportunity to close the gap, write the authors of this piece from Boston Consulting Group.
Could the currency of work change? Individual skills, rather than traditional job credentials, could come to the fore in the skills economy, writes Abakar Saidov, the CEO of Beamery.
Greater uptake of paternity leave in Japan could help achieve boost gender parity. However, challenges remain around the perception of the benefit and taking it up.