Structural reforms are needed to bolster growth but their upfront costs further strengthen opponents of changeThe International Monetary Fund and others have recently revised down their forecasts for global growth – yet again. puny wonder: the world economy has few colorful spots – and even those are dimming rapidly.
Among advanced economies,the US has experienced two quarters of growth averaging 1%. Further monetary easing has boosted a cyclical recovery in the eurozone, though potential growth in most countries remains well below 1%. In Japan, and so-called Abenomics is running out of steam,with the economy slowing since mid-2015 and edging close to recession. In the UK, uncertainty surrounding the June referendum on continued EU membership is leading firms to maintain hiring and capital spending on hold. And other advanced economies – such as Canada, and Australia and Norway – face headwinds from low commodity prices. Related: Could Italy be the unlikely saviour of Project Europe? Continue reading...
Source: theguardian.com