Brexit will have a bigger economic impact on the UK than the European Union, the former head of the European Central Bank has told BBC Radio 5 Live. Jean-Claude Trichet added the break-up was “totally contrary to the new world” of large emerging economies, with single currencies and single markets.
The IMF urged that trade conflicts be resolved via international cooperation, without resorting to exceptional measures, and underlined the world economy is facing increasing risks especially financial pressures in vulnerable emerging economies and the return of sovereign risks in parts of the Euro area.
World manufacturing is in a phase of steady growth due to the improved financial condition of industrialized countries, especially in Europe, and China’s continued growth, the United Nations reported on Wednesday.
India and Brazil have the highest government debt ratios at almost 70% of GDP among top ten emerging market economies, according to a report by Deutsche Bank.
The Latin American block arrives this week at the G20 summit in Cannes with a consensus spearheaded by the strong political standing of Brazil in global affairs and with criticisms to the way in which the European Union and the US are managing their respective “crises”.
Global oil demand will increase further next year, the International Energy Agency (IEA) has predicted. The IEA, which represents the main oil consuming nations, said the increase in crude usage would continue to be driven by emerging economies.
US Federal Reserve rejected criticism that its actions (‘accommodative monetary policy’) have pushed down the foreign exchange value of the US dollar and thereby boosted the price of commodities, adding that the Fed is “fully committed” to maintaining the dollar’s purchasing power and to keeping inflation in check.
Capital flows to emerging markets won’t significantly slow when the US Federal Reserve ends its bond-purchasing program known as quantitative easing, said Olivier Blanchard, chief economist at the IMF.
China will be able to avoid a financial crisis that is due to hit other developing countries over the next five to 10 years a central bank adviser was quoted as saying on Saturday.
The global economic recovery is gaining strength, with world growth projected at about 4½ percent in both 2011 and 2012, but unemployment remains high, and risks of overheating are building in emerging market economies, the IMF said in its latest forecast.