April 7, 2015, 20:04 Washington, April 7 (PL) The annual potential growth in advanced economies will rise to 1.6 percent next five years, still below the previous to the current crisis rates, predicted today the International Monetary Fund (IMF).
This situation will make it difficult to reduce the high public and private debt, and said the financial institution in a study, which is part of the biannual World Economic Outlook IMF will be discussed at the meetings of spring of this organization and the World Bank coming week.
According to the study, the aging population and lower productivity of the richest countries will be a limit on recovery in that period, the growth rate they had before the financial crisis of 2008.
The IMF also said that the world’s potential growth was very concerned after the financial meltdown of 2007-2009 and is likely to remain low for years, implying that interest rates will probably be in the minors levels for some time.
According to experts, the growth potential measures the speed at which economies may increase over time without bumping into obstacles inflation.
This indicator accused signs slowdown in developed economies before the financial crisis due to the aging population and a decline in technological innovation.
The IMF considered in their study further weakness in demand in the area euro and Japan could lead to an even lower potential growth than projected
The institution recommended the rich to support demand and investment economies, and devote more funding for research, development and infrastructure.
With regard to emerging economies, noted in his report that these should also raise infrastructure spending, eliminate excessive regulations and improve the quality of education
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