The International Monetary Fund (IMF) expects global economic growth to improve this year, but it will probably remain below its potential of about 4%, according to its managing director, Christine Lagarde.
In a speech at the National Press Club in Washington DC, Lagarde also warned that that the gradual recovery was still vulnerable. “With inflation running below many central banks’ targets, see rising risks of deflation, which could prove disastrous for the recovery,” she told her audience. “If inflation is the genie, then deflation is the ogre that must be fought decisively.
“Central banks should return to more conventional monetary policies only when robust growth is firmly rooted,” she added. This made it critical that the US Federal Reserve avoids “premature withdrawal of monetary support.” Last month the Fed confirmed a
modest reduction in its economic stimulus programme
from January 2014, a process dubbed ‘tapering’ that analysts believe could lead to a full exit by the end of 2014.
The overall economic picture was more encouraging, said Lagarde. “This crisis still lingers. Yet, optimism is in the air: the deep freeze is behind, and the horizon is brighter.
“My great hope is that 2014 will prove momentous – the year in which the ‘seven weak years’, economically speaking, slide into ‘seven strong years’.”
Although the world economy was strengthening at the end of 2013, it is ‘still stuck in low gear”, according to Lagarde. “This means that the world could create more jobs before we would need to worry about the global inflation genie coming out of its bottle.”
For the eurozone area, the European Central Bank (ECB) could do more to spur growth, the IMF chief said. “Targeted lending, for example, could help reduce financial fragmentation. The forthcoming review of asset quality and stress tests can also help, but only if they are done in an even-handed and credible manner.”
In today’s digitally connected world, infinite quantities of data are produced by consumers daily at a mind-boggling pace and volume. With under three months left to prepare, here are four areas for businesses to consider, to make sure they are ready for GDPR implementation.
Cash-flow based metrics now feature prominently alongside traditional revenue measures of business performance in the key figures or financial summary pages of any public company.
GTNews asks Pugsley about what advice she would give to treasurers dealing with mergers and acquisitions, what the key challenges for her year ahead will be and how she is selecting a treasury management system (TMS).
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.