IMF's latest World Economic Outlook- Warns Future Threat to Global Growth

Emerging Markets Scenario:

Bright side is that the emerging economies continue to contribute the lion’s share in the overall growth. Increasing geopolitical tensions are one of the major disturbances in the road towards growth.

In China, Latin America, Middle East and North Africa the growth forecast is fragile and tends to decrease by half this year. Reasons for the decline in the economy vary from domestic constraints to declining exports and investments. Yet in spite of the constraints, the economies here are picking up fairly enough.

Surprisingly enough, in the Sub Saharan Africa, virtual strong growth is reflected. Supportive external demand and strong investment demand are the conditions that favored growth in the economy.

IMF supposes that the scene could get even worse in future. These projections assume sensibly accommodative fiscal and monetary policy, as well as a decline in geopolitical tensions, which is alarming. The growth slowdown since 2010 is stupendous in the last 40 years, comparable to the Latin American crises of late 1980s and the Asian crisis of late 1990s.

Renowned officials gathered in Washington for the World Bank and IMF meetings in hope of raising an alarm through the report, so decisive action is taken to support global growth. Unfortunately, policy makers seem to be growingly accustomed to bad economic news.

Also Read: 8 Biggest Corporate Acquisitions Of All Times