Category: ECONOMY

J C Suresh with UN News | IDN-InDepth NewsAnalysis

TORONTO (IDN) – Decline in oil prices, a stronger U.S. economy, and continued low global interest rates will help fuel the growth of the world economy in 2015, says a new study issued by the World Bank Group on January 13.

The Global Economic Prospects report, published every two years, predicts a global economic expansion of 3 per cent for 2015, 3.3 per cent for 2016, and 3.2 per cent in 2017 – a boost following last year’s disappointing 2.6 per cent growth.

By Martin Khor* | IDN-InDepth NewsAnalysis

GENEVA (IDN) – Several developing countries are now being engulfed in new economic crises as their currency and stock markets are experiencing sharp falls, and the end is not yet in sight. The “sell-off” in emerging economies has also spilled over to the American and European stock markets, thus causing global turmoil.

Countries whose currencies were affected of late include Argentina, Turkey, Russia, Brazil and Chile. A hike in interest rates by Turkey and South Africa has so far failed to stem the depreciation of their currencies. An America market analyst termed it “emerging market flu” and several global media reports tend to focus on weaknesses in individual developing countries.

By J C Suresh | IDN-InDepth NewsAnalysis

TORONTO (IDN) – A new report has underlined the interdependence of the world economy, which is expected to strengthen in 2014 with growth picking up in developing countries and high-income economies appearing to be finally turning the corner five years after the global financial crisis.

According to the World Bank’s Global Economic Prospects (GEP) report, the firming of growth in developing countries is being boosted by an acceleration in high-income countries and continued strong growth in China. However, growth prospects remain vulnerable to headwinds from rising global interest rates and potential volatility in capital flows, as the United States Federal Reserve Bank begins withdrawing its massive monetary stimulus.

By David Dapice* | IDN-InDepth NewsAnalysis

MEDFORD (IDN |Yale Global) – As the year that saw the world’s strongest economy brought to the precipice of a default comes to a close, and many wonder if 2014 promises more stability? Judging by most forecasts, including that of the International Monetary Fund, the global economy may grow about 3.5 percent, but confidence in that forecast is subject to more than usual hedging due to several policy unknowns and uncertainties.

As unemployment in the developed world remains steady and growth in the emerging economies dependent on lackluster performance of the industrialized economies, a question mark hangs over economic prospects worldwide.

By World Economy Desk | IDN-InDepth NewsAnalysis

BERLIN (IDN) – The South Centre, an intergovernmental organization of developing countries, has good news about developing economies. Contrary to the view promoted by ‘establishment institutions like the IMF’ (International Monetary Fund), recent events show that major developing countries have not “decoupled” their economies from those of advanced ones, avers Yılmaz Akyüz, chief economist of the Geneva-based organization.