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Journals - Essay Example

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The International Monetary Fund has predicted a slow but sure economic recovery as developing countries are trying their best to end the steepest recession the world has witnessed since the world war. The world economic outlook has predicted a positive growth starting from…
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Download file to see previous pages during the World economic Outlook (WEO), the IMF, however, noted that the growth would be quite sluggish and it would not be able do much to prevent further unemployment across the globe. It also added a word of caution about credit crunches and lesser demands during the recovery period. A much better growth is forecast primarily for 2010 with an expansion of about 3.1%. The IMF forecast for Britain is a weaker growth in the remaining of 2009 and a 0.9% rate for 2010, three times more than the previously expected rate of 0.2%. Europe, North America and Japan are expected to show a moderate growth of 1.3% next year, while the largest growth rate has been predicted for China and India at 9% and 6.4% respectively. Thus Asia is been predicted to lead the economical growth from the front during 2010. However, unemployment is expected to
remain on a high in most developing countries even next year especially in the US, Germany, France and Italy. The WEO has attributed this resurgence to strong public policies that have been initiated by many world economies together with the large cuts in interest rates by Central Banks. The IMF also warned against complacency as it would not do any good to improve the situation further. The current recovery has been attributed mainly to increased public spending and inventory adjustments and the IMF adds that a sustained recovery will require careful balancing of private and public demands and also between countries with large current accounts and those showing current account deficits.
The article stresses that there will be a sure recovery and there will not any global economic meltdown as previously forecasted and adds that this road to recovery will have its own share of hurdles and only a proper balancing act between surplus and deficit economic countries will help to achieve complete recovery. There is also no forecast of an immediate improvement in unemployment rates due to the sluggish growth to recovery. A complacent ...Download file to see next pagesRead More
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