Posts Tagged International Monetary Fund

G-20 Leaders Promise Measures to Fight Global Recession

Posted by David in Economy news, News on May 3rd, 2009

Leaders of the world’s largest rich and developing economies met Thursday in London. The Group of Twenty agreed to an additional trillion dollars for the International Monetary Fund and other lenders to strengthen the world economy and trade. President Obama says the G-20 summit will be a “turning point” in seeking global economic recovery.

The leaders promised to keep closer watch over banks, hedge funds, credit rating agencies and executive pay. They also agreed to act against countries that provide tax shelters for the wealthy. And they agreed to form a supervisory group to warn of problems in the world financial system.

The G-20 is nineteen countries and the European Union. Members represent about ninety percent of world economic activity and eighty percent of trade.

Finance ministers and central bankers formed the group ten years ago to give more attention to developing nations. Leaders met last November for the first time. They plan to meet again in September.

Developing economies like China, India and Brazil want greater influence over international financial policy and groups like the I.M.F. Western countries now see developing nations as important partners in the effort to get the world economy growing again.

The currency most commonly used in foreign trade is the dollar. But last week, the governor of the Chinese central bank suggested that the dollar be replaced as the world’s leading reserve currency. Zhou Xiaochuan called for a new currency disconnected from individual nations — such as using what are called Special Drawing Rights.

The International Monetary Fund created the Special Drawing Right, or S.D.R., forty years ago. The value is based on several major currencies. Today the I.M.F. and some other international organizations mainly use it as an accounting tool.

Last week a United Nations group of experts also urged a new global reserve system — an expanded version of Special Drawing Rights.

At the G-20 meeting, Russian President Dmitri Medvedev called for a study of a new reserve currency. He said it would be wise to support the creation of strong regional currencies and use them as the basis, possibly also using gold.

Few experts see a threat to the dollar, at least for now.

And that’s the VOA Special English Economics Report, written by Mario Ritter. For more on the London summit, go to voaspecialenglish.com. I’m Steve Ember. (VOA News )

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International Monetary Fund Says World Economy Will Shrink This Year

Posted by David in Banking news, Economy news on May 3rd, 2009

The World Bank and the International Monetary Fund will meet in Washington, D.C. Saturday and Sunday. One subject for discussion will be falling expectations for world economic growth.

A new report by the I.M.F. estimates that the world economy will shrink by one and three-tenths percent this year. That would be the worst performance in more than sixty years. Three months ago, the I.M.F. predicted a small growth for this year.

Major industrialized economies are expected to see the biggest decreases, shrinking by almost four percent. The I.M.F. predicts developing economies will continue to grow for the year, but only by about one and one-half percent.

The I.M.F. says the world will slowly return to growth of almost two percent next year. But the lending organization warns that strong policies to supervise and support the financial system are needed if the world economy is to fully recovery.

Olivier Blanchard is the chief economist for the I.M.F. He has said that banks are still in the process of rebuilding their financial positions. He added that securities markets are still operating poorly.

Economic experts believe the world financial industry is moving towards recovery but with more losses to come. In all, the I.M.F. says worldwide financial losses could be as high as four trillion dollars by the end of next year. World trade is expected to drop eleven percent this year, after expanding by three percent last year.

The I.M.F. report says international lending may not fully recover until two thousand eleven. The financial crisis has made the I.M.F. more important than ever. The world’s largest economies promised to increase the size of the fund by about five hundred billion dollars. They did so at the G-Twenty meeting in London earlier this month. This week, President Obama proposed that the United States lend the I.M.F. one hundred billion dollars as part of that promise.

Last week, Mexico became the first nation to borrow from the I.M.F. under a new program to provide emergency credit to nations with strong economies. Mexico received a forty-seven billion dollar line of credit for one year. Poland and Colombia are also seeking loans from the program.

And that’s the VOA Special English Economics Report, written by Mario Ritter. You can find more financial news, plus transcripts and archives of our programs at voaspecialenglish.com. I’m Steve Ember. ( VOA News)

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International Monetary Fund (IMF) more pessimistic about global economic

Posted by David in Economy news on April 30th, 2009

International Monetary Fund IMF again lower forecasted growth since World 0.5% to negative 1.3%. Economic picture worse make the investment return to that party is safe gold market.
Those unemployed and take home pitch sunshine through rain cover on the street Las Vegas, Nevada State. International Monetary Fund forecast unemployment in the U.S. is 8.9% this year and increased to 10.1% in 2010.

This report made yesterday, before more meetings between the U.S. and some major economies into tomorrow 24 / 4. This weekend, International Monetary Fund and World Bank will also discuss to find solutions for the global accounting. At the G20 meeting in London months before, U.S. President Barack Obama and leaders of the world’s most increase financial potential for the IMF and a number of financial institutions lending on the world, with the amount support up to 1.1 thousand billion.

Islamic months 1 / 2009, the IMF can look around more, predicts the global economy is still going on even to the modest growth of 0.5%. However, the place make new IMF declared, “impact of degradation up to the alley ngách all over the world. No doubt what more, this degradation is hidden from the worst degradation of 1930″ .

IMF forecast for the U.S. dreary than forecast them. According to International Monetary Fund, the economy the most powerful global growth will reduce to 2.8% this year. This may be the worst years of the United States since 1946.

Among the national industrial development, Japan is the biggest victim with negative GDP growth of 6.2%. Russia’s GDP draw back 6%. Number of negative growth Germany, England, Mexico and Canada in turn is 5.6%, 4.1%, 3.7% and 2.5%.

The rare bright points in the global economy lies in Asia. Percent economic growth even though China may alleviate this year but still significantly higher enviable to the rest of the world is 6.5%. India will be a 4.5% growth this year.

With the forecast of IMF, unemployment of the world will rise. Unemployment in the U.S. may be at 8.9% and quickly climb 10.1% in 2010, the IMF’s report yesterday. Picture of the other countries such as Germany, England and no light.

Economic forecasting for next year by the IMF of a little more, with positive growth of 1.9%. The private U.S. economy next year will not increase, not decrease. Countries like China, India and the recovery will continue but destruction.

With 185 member countries and is headquartered in Washington, USA, International Monetary Fund IMF role object for the world. IMF’s mission is to provide the loan and financial support for Member States are affected by global degradation. The Fund also urge world have specific action up to the banking system.

In degradation, reducing the risk that may occur. Prices go down will make the situation worse. Yesterday, IMF warns that the reduction in the level of fit can be found in the U.S. and 16 countries use them for money in Europe. Meanwhile, Japan may be the biggest victims of the reduction this year.

IMF forecast made by world gold prices gradually go up in the transaction yesterday, reaching USD 892 at 11h am hourly Hanoi and landmarks to 900 USD per ouce. Storm in economic crisis, many investors see precious metals such party is safest.

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