The World Trade Organization established the projections for world trade growth for 2024 and 2025, placing them at 2.7 % and 3 %, respectively.

According to the international institution, it has established the estimates taking into account destabilizing factors such as the increase in geopolitical tensions and economic policies, in addition to inflation and the reduction of interest rates in the different regions.

“World merchandise trade is set to rise by 2.7 % this year, after a 1.1 % decline in 2023, which would mean a recovery pace slightly higher than the 2.6 % projected last April by the World Trade Organization (WTO).”

On inflation, a factor that increases distrust in the world’s economies, the WTO stresses that by mid-2024 it had fallen enough “to allow central banks to begin lowering interest rates, adding that lower inflation should increase household real income and encourage consumer spending, while lower interest rates should increase business investment.”

However, it is forward-looking and warns that “divergent monetary policies among major economies could lead to financial volatility and changes in capital flows, as central banks reduce interest rates, which could make debt service more difficult, particularly for poorer economies.”

The organization is optimistic but alert, according to the director general of the WTO, Ngozi Okonjo-Iweala, regarding possible setbacks that may arise from the worsening of regional wars, such as those in the Middle East.

She stressed that since the creation of the organization, three decades ago, per capita income in middle- and low-income economies has almost tripled, so in her opinion it is necessary to continue “working collectively to guarantee global economic stability and sustained growth, since they are essential to improve the well-being of people around the world.”

The WTO has detailed that the short-ter short-t m outlook for trade in services is more positive than for goods, “with an 8 % year-on-year growth in dollars in trade in commercial services during the first quarter of 2024.”

M.Pino

Source: americaeconomia

(Reference image source: Amira El Fohail en Unsplash)

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Ecuador signed a 48-month agreement with the International Monetary Fund to receive USD 4 billion, within the framework of the Expanded Fund Facility (SAF).

The money will be used in various economic policies and structural reforms, although it has been indicated that said agreement is subject to the approval of the Administration and the Executive Board of the IMF.

The head of the IMF mission in Ecuador, Varapat Chensavasdijai, said: “I am pleased to announce that IMF staff and the Ecuadorian authorities have reached an agreement in support of Ecuador’s economic policy plan. Amid a challenging macroeconomic landscape, our objective has been and continues to be to support the authorities’ efforts to improve the living standards of all Ecuadorians, with a focus on protecting the most vulnerable and promoting sustainable growth.”

The South American country issued a statement on the technical agreement with the international organization, clarifying that the next step will be its ratification in order to improve the quality of life of citizens, and also boost fiscal sustainability, macroeconomic stability and the promotion of a strong and inclusive economy.

M.Pino

Source: americaeconomia

(Reference image source: Blogging Guide in Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

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Venezuela must recognize the “serious ideological and political errors” in which both government officials and opponents have made, in addition to making major changes to regain its place as a prosperous economy in the world. This was stated by the economist Orlando Ochoa through his account on the social network Twitter.

He highlighted that currently the country “has an average per capita income lower than Haiti and less than half that of Bolivia,” which significantly impacts people’s development and increases poverty in the country.

Ochoa pointed out: “Overcoming the economic collapse of 2013-20 in Venezuela and recovering its place as a prosperous economy in the world will require great changes, recognizing the serious ideological and political errors” in all political sectors.

He recalled that Venezuela for many decades in the twentieth century registered the highest income in the region and it was not only the income obtained from the oil rent. Fiscal order existed in the country and the governments managed to control the inflationary index, avoiding a precipitous drop in workers’ wages.

M. Rodríguez

Source: bancaynegocios.com

La entrada Venezuela needs big changes to recover its economy apareció primero en Bitfinance.