IMF Economic and Fiscal Updates – April 2013

(CC) Mike Licht/FlickrThe IMF has just released two reports, the latest World Economic Outlook (WEO), “Hopes, Realities, and Risks;” and the Fiscal Monitor, “Fiscal Adjustment in an Uncertain World.”

According to the WEO, global economic prospects have improved again, but the bumpy recovery and skewed macroeconomic policy mix in advanced economies are complicating policymaking in emerging market economies. Chapter 3 examines the prospects for inflation, particularly because inflation was remarkably stable in the wake of the Great Recession and, in fact, has become less responsive to cyclical conditions. Chapter 4 examines whether today’s fast-growing, dynamic low-income countries are likely to maintain their momentum and avoid the reversals that afflicted many such countries in the past.

According to the IMF’s Fiscal Monitor, continued progress in reducing advanced economy deficits and a gradually improving external environment have lowered short-term fiscal risks, but global prospects nevertheless remain subdued, and many advanced economies face a lengthy, difficult, and uncertain path to fiscal sustainability.

Access World Economic Outlook here.

Access Fiscal Monitor here.