Sunday, January 24, 2016

Economists call for cautious optimism about the global economy in Davos – China Radio International

Economists, including Christine Lagarde, Managing Director of International Monetary Fund (IMF) called on Friday to maintain a cautious optimism about the global economy in 2016 and beyond.

“We see global growth in 2016 will be modest and uneven,” said Lagarde in a panel of the Annual Meeting of the World Economic Forum (WEF), adding that “there is a modest optimism but also significant risks.”
 

In an update of its World Economic Outlook released Tuesday, the Washington-based agency said growth was expected at 3.4 percent this year and 3.6 percent in 2017.
 

The global economy has a “completely different picture is changing,” even with downside risks as the downward trend of prices of products as a result of oil prices and the lack of synchronicity in monetary policy , he said in the meeting with the theme of the global economic outlook.
 

In addition, consensus was reached among the panelists that markets have “over-reacted” to China. The transition of the Chinese economy, industry, services, exports to the domestic market as well as investment to consumption, is a massive project, said the IMF chief.
 

“The basic lesson is not to worry about the markets, we have big issues,” said Martin Wolf, associate editor and chief economic commentators Financial Times, however the US, Europe and China look good and They are in the center of the world economic system.
 

The lack of synchrony in the monetary policy decisions taken by central banks, the Bank of Japan Governor Haruhiko Kuroda said the divergence of monetary policy among major economies simply reflects the divergent financial situations.
 

Inflation in Japan remained low, but the economy has been having a moderate recovery, said, “We expect this growth to continue for some time and inflation can improve substantially once oil prices start playing background.
 

Luo

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