The International Monetary Fund (IMF) has said emerging economies, including India, face the risk of protectionist pressures arising from a slowdown in the US economy.
According to IMF deputy director Charles Collyns, capital flows to emerging markets have been strong even as corrections in these markets are getting smaller.
Some of the longer-term issues are unwinding of global imbalances and sustaining global productivity growth. Though the housing correction has cooled the US economy, with a decrease in residential investment and non-residential construction, the labour market remains relatively strong.
The IMF official said inflation risks are down and headline inflation has moderated. Rising levels of capacity utilisation have been seen everywhere with output gap as a percentage of potential GDP accounting for as much as 4% in some of the advanced economies. “Emerging market and developing country growth has been strong, where rising commodity prices have been an important support,” he said.
According to IMF deputy director Charles Collyns, capital flows to emerging markets have been strong even as corrections in these markets are getting smaller.
Some of the longer-term issues are unwinding of global imbalances and sustaining global productivity growth. Though the housing correction has cooled the US economy, with a decrease in residential investment and non-residential construction, the labour market remains relatively strong.
The IMF official said inflation risks are down and headline inflation has moderated. Rising levels of capacity utilisation have been seen everywhere with output gap as a percentage of potential GDP accounting for as much as 4% in some of the advanced economies. “Emerging market and developing country growth has been strong, where rising commodity prices have been an important support,” he said.
on September 18, 2008, 12:56 pm
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