The International Monetary Fund predicts a progressive decline in global inflation and economic growth in the medium term, beyond differences between countries in fiscal, economic, and investment matters, as well as policies to generate employment and reduce poverty.

According to the international organization, although inflation has decreased after the pandemic, “divergences in growth and inflation persist between countries, along with depleted reserves and discouraging medium-term growth prospects. Vulnerable countries face the risk of falling even further behind.”

It indicates as a priority at the global level “to replenish reserves, reactivate medium-term growth and adapt the policies and tools of the International Monetary Fund (IMF) to a constantly changing world.”

Differences in inflation demand specific policies for each country, which take into account “factors such as the structure of labor markets, price rigidity, and dependence on energy and food imports.”

Slow growth in the medium term makes it more difficult to reduce poverty and create jobs in developing economies.

IMF proposes facilitating investment in key sectors

On the other hand, “fiscal deficits and high public debts could exceed 100 % of gross domestic product (GDP) in 2029 if decisive measures are not taken,” says the multilateral organization.

Among the measures it proposes to successfully achieve the goals is rebuilding fiscal space to strengthen economic resilience; “facilitating investments in climate and technological transitions; increasing revenues through more progressive taxes or higher carbon tax rates, and spending cuts in less priority areas” to pay off debt and free up space for strategic investments.”

Reforms to boost medium-term growth can be aimed at “simplifying red tape, improving education and training of the workforce, and promoting competition in markets. In addition, investment in infrastructure, especially in renewable energy and sustainable transport, can create jobs and stimulate long-term economic growth.”

The IMF does not leave out the fundamental aspect of international cooperation as a way to face global challenges such as “climate change, inequality and geo-economic fragmentation”.

M.Pino

Source: americaeconomia

(Reference image source: Behnam Norouzi for Unsplash+)

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La entrada IMF forecasts a decline in global inflation in the medium term apareció primero en Bitfinance.

Asdrúbal Oliveros released, this August 10, a video on his social networks, explaining the perspectives of the consulting firm Focus Economics on the dynamics of the Venezuelan economy for the last months of 2021 and for the next year 2022.

According to what was expressed by the economist, the firm estimates that by the end of 2021 the economy will register growth in the order of 3.3 % year-on-year. Additionally, he foresees that consumption in private companies will reach only 0.3 %. “With regard to the fiscal deficit, Focus Economics believes that at the end of the year it will be 11.5 points.”

Concerning inflation, the firm estimated that at the end of 2021 it will be around 1,549 %, while the price of the dollar will be located at 14.2 digital bolivars, the one that will come into effect as of October 1st this year, according to what was published by the Central Bank of Venezuela recently, which is equivalent to about 14,200,000 bolivars today.

2022 projections

The polling firm considers that by 2022 the Venezuelan economy will register a growth quite similar to that estimated for the end of this year, reaching 3.3 %. However, it projects significant private consumption, achieving growth of 8.4 % at the end of next year.

It also outlines a slight reduction in the fiscal deficit, placing it at 10.2 points by the end of 2022. While inflation could drop significantly to close at 746 %, but the price of the dollar is projected for December of next year at 132.5 new bolivars, that is to say about 132,500,000 of current bolivars.

M. Rodríguez

Source: bancaynegocios.com

La entrada Focus Economics estimates that inflation will close the year at 1,549 % apareció primero en Bitfinance.