All posts tagged world bank

IMF calls for Japan reforms, plan to clear debt

IMF calls for Japan reforms, plan to clear debt

TOKYO (AP) — The International Monetary Fund said Japan’s economy is recovering from years of stagnation, but that far-reaching reforms and a “credible plan” are needed to reduce its debt mountain and sustain growth in the long run.

The assessment, in a report released Monday, said the near-term outlook of the world’s third-largest economy “has improved considerably” thanks to monetary easing and increased government spending under Prime Minister Shinzo Abe’s administration.

It forecasts that Japan’s economy will grow 2 percent in 2013, helped by stronger demand at home and overseas, but will expand only 1.2 percent in 2014 as consumers tighten their belts following an expected increase in sales tax.

The IMF’s report, based on a consultation with the Abe government last month, echoes earlier comments by the World Bank’s lending arm on the “Abenomics” strategy of breaking out of a long spell of debilitating deflation by flooding the economy with money. At Abe’s behest, Japan’s central bank is striving to generate 2 percent inflation within the next two years.

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by admin on August 7, 2013  •  Permalink
Posted in Asia, Economics, Finance, Japan, Policy, Regulation
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Posted by admin on August 7, 2013

https://theasiancenturyreport.wordpress.com/2013/08/07/imf-calls-for-japan-reforms-plan-to-clear-debt/

Cons of deregulating finance

Cons of deregulating finance

It is speculated that China is set to accelerate the deregulation of its financial system. For years, China has restricted the ability of its residents and foreign investors to pull and push their money in and out of the country.

While that may be illiberal, there was a sound reason for this restriction: Every emerging market that has scrapped these regulations has had a major financial crisis and subsequent trouble with growth.

The world can’t afford that to happen in China. China is too big to fail.

This issue came to the fore last year when the People’s Bank of China announced that it might “liberalize” its financial system in five to 10 years. The move was in stark contrast to a National Development and Reform Commission-World Bank report that put such a plan much further into the future.

That study cited the overwhelming evidence that shows, first, that dismantling cross-border financial regulations is not associated with growth and, second, that it tends to cause banking crises in economies with fledgling financial systems.

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by admin on August 7, 2013  •  Permalink
Posted in Asia, China, Economics, Finance, Regulation
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Posted by admin on August 7, 2013

https://theasiancenturyreport.wordpress.com/2013/08/07/cons-of-deregulating-finance/

Malaysia’s Economy at Risk with Growing Consumer Debt

Malaysia’s consumer debt is at 76.6 per cent of its GDP and some economists believe that the growing consumer credit could rock the country’s economy.

Malaysia’s consumer debt is at 76.6 per cent of its GDP and some economists believe that the growing consumer credit could rock the country’s economy.

Malaysia’s consumer debt is at 76.6 per cent of its GDP and some economists believe that the growing consumer credit — where each ringgit of growth nearly matches an extra ringgit of consumer debt — could rock the country’s economy, the Financial Times (FT) reported today.

The country’s household debt ratio is the highest in the region, the influential daily reported, citing Johanna Chua, an economist at Citigroup, who believed this makes the Southeast Asia’s third largest economy vulnerable, especially as lower-income households bear a greater share of the overall debt.

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by Innovator on May 24, 2013  •  Permalink
Posted in Asia, Business, Economics
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Posted by Innovator on May 24, 2013

https://theasiancenturyreport.wordpress.com/2013/05/24/growing-consumer-debt-puts-malaysias-economy-at-risk-malaysia-consumer-citigroup-johanna-chua-economy-credit-kuala-lumpur-southeast-asia-world-bank-akpk-philippines-indonesia-singapore-emerging-market/

IMF Scales Back Southeast Asia Growth Forecast

The International Monetary Fund has cut its forecast on the economic growth of five nations in Southeast Asia to better reflect faltering growth in the global economy. Monday’s assessment, released in a report by the IMF, was the latest development institution to announce an assessment after the World Bank cut its economic growth forecast for next year.

The IMF cut the economic growth forecast for Indonesia, Malaysia, the Philippines, Thailand and Vietnam, which together are known as the Asean 5, to expand 6.1 percent in 2013, slightly lower that its earlier forecast of 6.2 percent. It cut the global economic outlook for growth to 3.9 percent next year, from its previous forecast of 4.1 percent.

Still, the IMF, which loaned billions of dollars to Thailand and Indonesia during the 1997-98 Asian financial crisis with strict conditions, maintained the growth forecast for the year at 5.4 percent, unchanged from its forecast three months ago.

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by stekunan on August 8, 2012  •  Permalink
Posted in Asia, Bank, Indonesia, Market, Vietnam
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Posted by stekunan on August 8, 2012

https://theasiancenturyreport.wordpress.com/2012/08/08/imf-scales-back-southeast-asia-growth-forecast/