Global economy to remain fragile until 2018, according to IMF
Global economy to remain fragile for years to come, says IMF
Click here to add Berlin as an alert
Disable alert for Berlin,
Click here to add European Central Bank as an alert
Disable alert for European Central Bank,
Click here to add International Monetary Fund as an alert
Disable alert for International Monetary Fund,
Click here to add Olivier Blanchard as an alert
Disable alert for Olivier Blanchard,
Click here to add The Guardian as an alert
Disable alert for The Guardian,
Click here to add Tokyo as an alert
Disable alert for Tokyo
The global economy will not be back in 'decent shape' until at least 2018, the International Monetary Fund's chief economist has warned.
Olivier Blanchard said he feared the eurozone crisis, debt problems in Japan and the US, and a slowdown in China meant that the world economy would not be in good shape until at least 2018.
"It's not yet a lost decade," he said, adding: "But it will surely take at least a decade from the beginning of the crisis for the world economy to get back to decent shape".
According to the Guardian, Blanchard made his comments on a Hungarian website Portfolio.hu ahead of the IMF meeting next week in Tokyo.
Germany is expected to defend its handling of Europe's debt problems at the meeting, but Blanchard said there was more that Europe's largest economy could do to support Spain and other struggling euro zone nations, the report said.
In particular, he urged Berlin to accept a rise in inflation and wages that would make it less competitive with its trading partners.
"A somewhat higher inflation rate in Germany should simply be seen as a necessary and desirable, relative price adjustment," he said.
- Al Tayer bucks the US department store trend with Bloomingdale's Kuwait opening
- Gulf Islamic banks set to outperform conventional banks for second year: Moody's
- Jordan secures EU finance for socioeconomic and environmental programs
- Same-day service deliveries in GCC an untapped market: Wing CEO
- Will terror attacks damper Arabs' appetite for European holidays?