The world economy may grow "slightly" more than 3 percent this year, the chief of the International Monetary Fund (IMF) said, reducing the lender's forecast from the 3.7 percent made in September.
"Consumers and investors remain cautious, and the recovery in the world economy is weaker than earlier anticipated," Horst Koehler, the fund's managing director, said in a speech at the Bank of Spain.
Central bankers have room to cut lending rates in order to ensure growth, he said, urging against "undue pessimism." Unless there is a prolonged war in the Middle East, the rebound is likely to continue, Koehler said in his prepared remarks.
"The economic policies of the larger advanced economies remain broadly supportive, and there is some further scope for monetary easing should that prove necessary," Koehler said.
The speech didn't quantify the impact of a US-led war against Iraq on the world economy. A yet-to-be published report by the IMF says that a war may cut as much as 2 percentage points off the forecast for growth of 3.3 percent this year, according to Handelsblatt, a German financial newspaper.
The US economy, the world's largest, is forecast to grow 2.4 percent this year, same as last year, AFX News reported, citing monetary fund projections to be published next month. The forecast for growth in the 12-nation euro zone this year was lowered to 1.3 percent from 2.3 percent in September, AFX reported. This year's forecast for Japan dropped to 0.5 percent from 1.1 percent.
The countries of Latin America, currently in the most difficult economic situation, are showing signs of a recovery, Koehler said.
To help boost growth, countries in the region need to enact fiscal policies that slow the growth of public indebtedness, have freer exchange rate regimens, improve their transportation and education systems and fight corruption, he said.
Koehler called on world leaders to complete the Doha round of trade negotiations successfully, in such a way that will encourage economic development.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from