The IMF has just released three reports, the latest World Economic Outlook (WEO), “Uneven Growth: Short- and Long-Term Factors,” the update to the Global Financial Stability Report (GFSR), “Navigating Monetary Policy Challenges and Managing Risks;” and the Fiscal Monitor (FM), “Now Is the Time: Fiscal Policies for Sustainable Growth.”
According to the WEO, potential output growth in advanced economies is likely to increase slightly from current rates as some crisis-related effects wear off, but to remain below precrisis rates in the medium term.
The update of the GFSR highlights that direct cross-border lending as a share of total banking assets has declined, mostly because of the retrenchment of European banks, and the share of local lending by foreign bank affiliates has remained steady.
According to the IMF’s Fiscal Monitor, fiscal policy is often used to reduce output volatility, especially in advanced economies, and that the more stable macroeconomic environment that results is in turn conducive to higher average growth.
Access World Economic Outlook here.
Access Global Financial Stability Report here.
Access Fiscal Monitor here.