Monday, April 14, 2014

World Bank and IMF Updates

At recent World Bank and International Monetary Fund meetings, relief over the seeming emergence from the global financial crisis was undermined by worries about post-recession economies' ability to sustain economic recovery and growth efforts. Pointing to rates of deflation, lagging rates of investment, and concerns over the global economic implications of the situation between Ukraine and Russia, officials are concerned that countries will recover in the short term but be unable to sustain recovery in the medium and long terms. In addition, officials are worried about the tenuous nature of international investment rates in developing countries - without assured investment, the World Bank and IMF argue that development may stagnate.

I think this article reiterates the idea that investment in an economy creates a model for sustainable economic development. In addition, the idea that investing in the development of other economies can benefit the investor country because it creates potential trade and mutual development relations.

http://www.nytimes.com/2014/04/13/business/international/finance-officials-push-for-bold-action-to-sustain-economic-growth.html?ref=international

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