Sent from my -BlackBerry Phone-
-----Original Message-----
From: MeLinda MeLisa <[email protected]>
Sender: [email protected]
Date: Sat, 1 Jan 2011 03:37:56
To: <[email protected]>
Reply-To: [email protected]
Subject: [StockForex] IMF Economist Sees Two-Speed Recovery In 2011
IMF Economist Sees Two-Speed Recovery In 2011
(RTTNews) - A two-speed economic recovery will be extended into 2011
with rich nations facing weak growth and emerging markets moving ahead
with strong recovery, according to IMF's chief economist Olivier
Blanchard.
In an interview to the Fund's online magazine, IMF survey, Blanchard
noted that along with their strong rebound, emerging economies will be
facing tough challenges like managing possible overheating and capital
flows. At the same time, growth in advanced economies will remain low,
barely enough to bring down unemployment.
"The two-speed recovery, low in advanced countries, fast in emerging
market countries, is striking and its features are increasingly stark.
They will probably dominate 2011, and beyond," Blanchard said.
He also warned that countries will be risking a healthy recovery in
the absence of continued focus on rebalancing their economies in the
coming year, including structural measures and exchange rate
adjustments.
Countries with excessive budget deficit must rely more on external
demand or exports. And, by symmetry, surplus countries, many of them
emerging markets, must do the reverse, shift from external demand to
domestic demand and reduce their dependence on exports, the economist
noted.
Regarding the economic prospects of low-income countries, he said
recovery in trade and high commodity prices have bettered economic
conditions in these nations. Private domestic demand also remained
quite strong
Source: http://marketpin.blogspot.com/
