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Tag Archives: GDP

Dampening the Impact of Global Financial Shocks on Emerging Market Economies

By Damiano Sandri  عربي, Español, Français, 日本語, Português, Русский The COVID-19 pandemic is impacting emerging markets through an unprecedented combination of domestic and external shocks. Among the latter, the pandemic has led to a sharp increase in global risk aversion and an abrupt retrenchment in foreign capital flows. Based on historical experience, these types of global financial shocks can significantly affect macroeconomic conditions in emerging markets, even if the exchange rate is...

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Making Economies More Resilient to Downturns

By John Bluedorn and Wenjie Chen عربي, 中文, Español, Français, 日本語, Português, Русский The world is in the grip of the COVID-19 pandemic and the ensuing Great Lockdown has pushed many countries into deep recessions—worse than during the 2008–09 global financial crisis. In response, governments and central banks all over the world have introduced strong discretionary (one-off and specific) fiscal and monetary measures to counteract the economic fallout caused by the spread of the...

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State-Owned Enterprises in the Time of COVID-19

Vitor Gaspar, Paulo Medas, and John Ralyea عربي, 中文, Español, Français, 日本語, Português, Русский The pandemic has highlighted the role of the public sector in saving lives and livelihoods. State-owned enterprises are part of that effort. They can be public utilities that provide essential services. Or public banks that provide loans to small businesses. But some are also struggling and adding to the burden on government finances. These range from national oil companies that are dealing with a...

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Household debt meets corporate debt

[embedded content] Households take on debt for a variety of reasons, such as financing education and purchasing a house. Household debt in the U.S. increased from 59% of GDP in 1990 to 98% of GDP in 2009, and many economists argue that the Great Recession was “Great” because household leverage was so high at the time. It has since declined steadily. In fact, in 2019, household debt and corporate debt were the closest they have been in nearly 30 years. The FRED graph above shows both...

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COVID-19 Pandemic and the Caribbean: Navigating Uncharted Waters

By Krishna Srinivasan, Sònia Muñoz, and Varapat Chensavasdijai Español, Français As the COVID-19 pandemic continues to spread across the globe—bringing severe human and economic costs—the Caribbean is no exception. With over 1,000 confirmed cases, many countries have taken strong containment measures, such as border closures and lockdowns, to “flatten the curve.” But the “sudden stop” in tourism is sharply slowing economic activity in the Caribbean, and growth in the region is projected to...

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The Great Lockdown: Worst Economic Downturn Since the Great Depression

By Gita Gopinath عربي, 中文, Español, Français, 日本語, Português The world has changed dramatically in the three months since our last update of the World Economic Outlook in January. A rare disaster, a coronavirus pandemic, has resulted in a tragically large number of human lives being lost. As countries implement necessary quarantines and social distancing practices to contain the pandemic, the world has been put in a Great Lockdown. The magnitude and speed of collapse in activity that has...

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In It Together: Protecting the Health of Africa’s People and their Economies

This blog is part of a series providing regional analysis on the effects of the coronavirus. By Karen Ongley and Abebe Aemro Selassie 中文, Español, Français, Português The growing presence of COVID‑19 in sub-Saharan Africa threatens the same human costs as elsewhere in the world. The economic costs could be just as devastating. Sweeping measures For their part, countries in sub-Saharan Africa are acting decisively, taking sweeping measures to halt the advance of the virus, with limits on...

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Policy Action for a Healthy Global Economy

This blog is part of a special series on the response to the coronavirus. By Kristalina Georgieva 中文, Русский While quarantining and social distancing is the right prescription to combat COVID-19’s public health impact, the exact opposite is needed when it comes to securing the global economy. Constant contact and close coordination are the best medicine to ensure that the economic pain inflicted by the virus is relatively short-lived. Many governments have already taken significant...

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Delivering on Africa’s Dreams

By David Lipton Across sub-Saharan Africa, a visit to a school offers both a vision of hope for the future, and a reminder of the difficulties in attaining that vision. My recent visit to Sierra Leone and Niger brought this duality into sharp focus. In Sierra Leone, classrooms at the Regent Square Municipal School showcase the government’s ambitious Free Quality Education program that aims to build on the country’s most precious resource—its children. There, eager students are attentive and...

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Finding Solid Footing for the Global Economy

By Kristalina Georgieva As the Group of Twenty industrialized and emerging market economies (G-20) finance ministers and central bank governors gather in Riyadh this week, they face an uncertain economic landscape. After disappointing growth in 2019, we began to see signs of stabilization and risk reduction, including the Phase 1 U.S.-China trade deal. In January, the IMF projected growth to strengthen from 2.9 percent in 2019 to 3.3 percent in 2020 and 3.4 percent in 2021. This projected...

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