WORLD ECONOMIC OUTLOOK APRIL 2014

The IMF Releases 2014 World Economic Outlook

The Peterson Group – Jakarta, Indonesia

In spite of difficulties, an uneven worldwide recovery carries on. Mostly as a result of weaker-than-expected world activity within the initial half of 2014, the growth forecast for the world economy has been adjusted downward to 3.3 percent for this year, 0.4 percentage point lower than in the April 2014 World Economic Outlook (WEO). While, the global growth projection for 2015 has been down to 3.8 percent.

Risks Jeopardize Market Recovery

Downside risks have risen since the spring. Short-term risks comprise a worsening of geopolitical tensions and a turnaround of recent risk spread and volatility compression in fiscal markets. Medium-term risks comprise stagnation and minimal potential growth in advanced economies and a fall in potential growth in emerging markets.

Accounting for greater risks as well as elevating actual and potential growth continue to be important. With advanced economies, this may demand continued help coming from monetary policy and fiscal adjustment attuned in pace and composition to backing up both the recovery and long-term growths. In many economies, a rise in public infrastructure investment can also give support to demand in the short term and help elevate potential output in the medium term.

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