The International Monetary Fund (IMF) on Friday (06.10.2017) called on the world's major economies to address stagnant growth, productivity and worrying imbalances in their current accounts, saying there is no guarantee that the global recovery will continue.
In a report on the economic health of G20 countries, the IMF said they had made substantial progress in boosting recovery after the 2008 financial crisis and subsequent recession, stabilising growth and lowering unemployment rates.
But he warned that many problems persist, as Potential growth rates in more than half of G20 economies are at 2% or less.
In addition, the document warns against Current account imbalances in the United Kingdom and the United States, which are dragging persistent trade deficits, and which could boost protectionism.
Next week, the IMF and the World Bank will hold annual meetings with member states, with representatives of the G20 also in attendance.
"The sustainability of growth is not guaranteed," the report says. "The cyclical recovery is firm, but productivity remains low."
A sharp and prolonged The fall in prices of various products, such as oil, was a burden on emerging economies. from countries such as Argentina, Saudi Arabia, Brazil and South Africa, as well as in Mexico and Türkiye.
Meanwhile, advanced economies such as Japan, South Korea, Australia, France and Italy are also expected to grow below their potential due to lower-than-estimated inflation and poor demand.
"While sovereign debt levels have largely stabilised, little progress has been made in reducing them," the report added.
IMF calls for new efforts to reduce the deficit and the "uncomfortably high" levels of public debt in Spain, Japan, the United States and Brazil.
"China should work to reduce financial vulnerabilities in the private sector," the report said, citing rapid credit expansion in the world's second-largest economy.
It also says that collective action by the G20 would promote significant GDP growth, adding 3,5% to member states by 2028, according to projection models used by the IMF.
Source: AFP
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Which countries belong to the G20?
The Group of 20 includes: European Union (EU) and 19 industrialised and emerging countries: Germany, Saudi Arabia, Argentina, Australia, Brazil, Canada, China, South Korea, United States, France, India, Indonesia, Italy, Japan, Mexico, United Kingdom, Russia, South Africa and Turkey.
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