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7/22/2016

IMF, Report on Global Expectations and Policy Difficulties Prepared for the G20 Meeting

“Moderate recovery will be continued in developed economies, whereas growth expectations will be more sluggish in developing economies. Corporate debts and financial risks are of vital importance in developing economies. Integration has to be safeguarded in global trade and trading should be generalized. The new relation between Britain and the EU has to gain clarity.”

IMF retained the growth expectation for Turkey at the same level of 3.8% for 2016, downgrading the expectation for 2017 to 3.2% from 3.4%

International Monetary Fund (IMF) published the Global Expectations and Policy Difficulties Report for the G20 Finance Ministers and Central Bank Governors Meeting to be held in China on the dates of July 23 & 24, 2016.

It is underlined in the report that Brexit will emphasize the economic, political and structural uncertainties in global economy. It is stated that the global outlook has been revised in a downward manner for 2016 and 2017 as a result of macroeconomic outcomes expected to arise after “Brexit”. It is being pointed out that growth will not only be weak in global economy but will also be unequal and that this will bring forth more difficulties in issues such as access to trade and immigration.

It is being stated that failing to clarify the new relation to be established between Britain and the EU will emphasize uncertainties and that risks will arise curbing global growth in case decisive steps are not taken in the short run. It is also being stated that the transformation in China may amplify fragility in global economy if not managed well.

IMF makes the warning in the report that a new relation should be established at once avoiding the uncertainties in Brexit issue and in which returns on trade between Britain and the EU are protected. IMF pointing out that corporate debts and financial risks in developing economies and the transition to a new growth model in China are of vital importance, states that public resources may be necessary to be used regarding these issues. IMF also underlines that integration has to be safeguarded in global trade and trading should be generalized to enable growth in global economy.

IMF has downgraded the growth estimate for Turkey for the year 2017

IMF foresees that moderate recovery will be continued in developed economies, stating that growth expectations will be more sluggish in developing economies with a historical perspective.

IMF also downgrades the growth estimate for Turkey. IMF keeps the growth expectation for Turkey at the same level of 3.8% for 2016, downgrading the expectation for 2017 to 3.2% from 3.4%.