July - December 2012

G20: September Forum on Drought
30 July 2012 – Reuters
The drought in the United States as well as in Russia has resulted in rising world prices and “serious tensions “on the grain market. The real impact of the drought in the U.S. Midwest – the worst in 50 years- is currently evaluated by the government, which will publish its crop report in mid-August. After the publication an analysis of the G20 will follow, and the gained information of those reports will lay the ground for forum of G20 countries in September. The forum was called for by France, the current chair of the G20 agricultural body. According to G20 ministry officials, the situation cannot be qualified as a crisis yet.  (Read More)

IMF To Make Assessments More Effective
30 July 2012 – Bloomberg
In a new statement, the IMF has admitted that the process of resolving the crisis and stabilizing the global economy will not only be costly but also take longer than expected. The assessment is part of the IMF’s recently published pilot report on external monitoring. The report also states that the worldwide “stresses” are spillover of the euro crisis and the inability to tackle it fast enough. The report, a response to the critique on the IMF’s ability to foresee economic fragility and to assess data correctly, outlines possible improvements of IMF monitoring through focus on domestic policies and exchange rates.  (Read More)

IMF on Spain
27 July 2012 – Bloomberg
According to the IMF, Spain’s economy is suffering from a “double-dip recession” and weak in creating market confidence. According to the IMF, imbalances are generally improving. It is mainly the high yield on Spanish bonds that limit investment into the country and consequently the opportunity of a fast recovery. Fiscal policy implementations by the Spanish Government in 2011 have not been sufficient, the IMF said, and “further efforts are also needed to upgrade supervision, crisis management, and the resolution framework”. The statement highlights the urgency of progress in Spain through support of other eurozone members. (Read More)

G20 Wants to Foster Further Economic Growth
20 June 2012 - New York Daily News
The countries of the G20 have agreed to support the pledge for sustained economic growth through the strengthening of demand. The commitment also includes the intention to regain the confidence of investors and to keep the WTO as a central player in international trade relations. The strengthening, once gone about the necessary policies, can promote more jobs. The Heads of state and government support the pledge, but will have to reduce their trade barriers. The time frame of direct action is still to be set.  (Read More)

IMF Cuts Forecast
16 July 2012 – New York Times
The IMF has cut its forecasts for growth in 2013, explaining that the EU has not done enough to lower debt and improve economic performance. The forecast was changed from 4.1% to 3.9 % and was accompanied by the statement that this decrease might even be too small. The IMF hopes the governments of Europe will implement more policies. The biggest lowering of growth estimations, however, is experienced by Asian countries and Brazil. Also, US economy growth predictions have been changed considerably and higher borrowing costs have also been assessed as likely in the next two years.  (Read More)

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