IMF affirms Kosovo's 2017 GDP growth forecast at 3.5%

Bruno Cirelli
Ottobre 12, 2017

-The international financial institution also revealed it's easy for some countries to attract loans.

The IMF today said policymakers must take advantage of the improving global outlook and avoid complacency by addressing rising medium-term vulnerabilities that are building under the surface.

The World Bank has said recovery is underway in Sub-Saharan Africa with the Gross Domestic Product (GDP) growth expected to strengthen to 3.2 per cent in 2018 following a sharp slowdown in the past two years.

Rich countries should actively help low-income countries to develop resilience to temperature increases, like for instance the successful Productive Safety Net Program in Ethiopia, which supports households with environmental and infrastructure projects and programs to diversify income sources.

This would put these economies in a better position to withstand a reduction in capital inflows as a result of monetary normalisation in advanced economies or waning global risk appetite, it said.

On the rising debt profile, she said: "The concern in a number of oil exporters is that unless there is action now, debt which has been rising is a concern because of the interest payments". This could put growth at risk in the future.

The third chapter, out of five, is called "The Effects of Weather Shocks on Economic Activity: How Can Low-Income Countries Cope?" and it warns that climate change will be one of the fundamental challenges of the 21st century.

"So for insuring that you have the ability to use those revenues for enhancing expenditure, there is a need to make sure that interest to revenue is kept at reasonable level".

The IMF expects the Chinese economy to grow 6.8 per cent this year and 6.5 per cent next year, both 0.1 percentage point higher than its previous forecast in July.

Baku, Fineko/abc.az. On 11-15 October, Washington will host the annual meeting of the International Monetary Fund (IMF) and the World Bank (WB).

"The global recovery is continuing, and at a faster pace... we see an accelerating cyclical upswing boosting Europe, China, Japan, and the US, as well as emerging Asia", IMF chief economist Maurice Obstfeld was quoted as saying by Xinhua news agency. Joining him at the panel are: Naoko Ishii, CEO of GEF and Andrew Steer, Executive Director of World Resources Institute.

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