IMF urges global leaders to cooperate on financial market concerns

Joseph Lazzaro — Mon, 14 Apr 2008 13:47:00 EST

Filed under: International Markets, Forecasts, Economic Data, Politics, Recession

An International Monetary Fund steering committee is urging global leaders to cooperate to deal with the current financial crisis, which the IMF concludes is global in scope.

In its communiqué following its spring meeting, the IMF said it was meeting at a time of "unusual uncertainty regarding global economic and financial market prospects." The IMF added that the challenges facing the world economy are of a global nature, requiring strong action and close cooperation among the membership.

Cites financial instability, credit crunch

The IMF said global financial instability has increased since its last meeting. Further, global economic growth has slowed and growth prospects for 2008 and 2009 have deteriorated, adding that risks to the outlook come from the still unfolding events in financial markets and from the potential worsening of the housing and credit cycles. (Earlier this year the IMF cut its 2008 global GDP growth forecast to 3.7% from 4.2%)

Meanwhile, for developed economies, the IMF said monetary policy should continue to aim at medium-term price stability, while responding flexibly to signs of a more pronounced and prolonged economic downturn. The IMF also endorsed fiscal stimulus, at least temporarily, as an appropriate engine of growth and as a stimulus tool, saying fiscal policy can also play a useful, counter-cyclical role. In the United States, "temporary fiscal easing will help to counter downside risks to growth," the IMF said.

Continue reading IMF urges global leaders to cooperate on financial market concerns

IMF urges global leaders to cooperate on financial market concerns originally appeared on BloggingStocks on Mon, 14 Apr 2008 13:47:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

U.S. Q3 current account deficit declines -- better, but still not good

Joseph Lazzaro — Mon, 17 Dec 2007 14:12:00 EST

Filed under: Good news, India, China, Economic Data

The U.S.'s current account deficit decreased to $178.5 billion in Q3 2007, down from a revised $188.9 billion in Q2 2007, the U.S. Commerce Department announced Monday, as exports of capital goods and motor vehicles increased.

Economists had expected [subscription required] a Q3 2007 account deficit of about $184 billion. The Q3 2007 current account stat represents the smallest account deficit as a percent of the U.S. economy since Q1 2004.

The Q3 2007 account deficit was roughly 5.1% of U.S. GDP using a closing Sept. 2007 GDP of $13.967 trillion. That's down from 5.5% of GDP using a closing June 2007 GDP of $13.769 trillion.

Small victory

In Q3 2007, imports of goods rose to $497.6 billion from $483.6 billion in Q2 2007, but exports of goods rose even more, to $297.9 billion from $279.3 million. Meanwhile, the trade of services rose to a surplus of $26.5 billion from $25.8 billion.

Continue reading U.S. Q3 current account deficit declines -- better, but still not good

U.S. Q3 current account deficit declines -- better, but still not good originally appeared on BloggingStocks on Mon, 17 Dec 2007 14:12:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments