The World Bank forecasts global economic growth to edge up to 3.1% in 2018 after a much stronger-than-expected 2017, as the recovery in investment, manufacturing, and trade continues, and as commodity-exporting developing economies benefit from firming commodity prices.
The true test for the G20 will be whether it can prevent a future financial crisis, World Bank Group President Robert Zoellick said Friday ahead of the upcoming G20 summit in Cannes.
The head of the Argentine Industrial Union (UIA), José Ignacio de Mendiguren, warned on Wednesday that Argentina “is starting to be affected” by the global financial crisis, furthering that the country “is not protected” against the situation.
Uruguayan President Jose Mujica said Monday that the developed world financial scenario is quite disappointing almost regrettable, and recovery in those countries can be expected to be “very slow and full of uncertainties”
“I have no doubts we are before the most significant financial crisis capitalism has faced in contemporary history”, said Uruguay’s Vice-president Danilo Astori when asked about the possible consequences for the region if the lack of confidence in the US dollar and Euro extends.
The world's trading nations are succumbing to protectionism in the wake of the global financial crisis, limiting exports of food and raw materials and installing new import barriers, the WTO warned.
Euro-zone interest rates have been raised to 1.25% from the record low of 1% by the European Central Bank (ECB). Interest rates had been held at 1% for just under two years following the financial crisis and global recession.
Belgium has joined Portugal, Spain and Italy on the hit list of countries that may be heading for financial crisis. Like Ireland, struggling to fend off criticism of its austerity package, there are signs that international bond investors are starting to view Belgium as living on borrowed money and borrowed time.
The global recession has created a “wasteland of unemployment” that is likely to leave scars on society for years to come, unless action is taken to address the jobs crisis, IMF Managing Director Dominique Strauss-Kahn warned.