IMF: “China can do it yet”

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IMF

IMF: “China can do it yet”

The International monetary Fund (IMF) calls for a global “partnership for growth” and warns of the consequences of the economic slowdown in China. But it must not be so bad as often feared.

China’s economy could still have a “hard landing” and avoid a path to slower but more sustainable growth, pivoting, said IMF Director Christine Lagarde (in the article) on Thursday at an Online press conference. This must be Beijing state-owned enterprises to further reform its currency market and openly communicated Wechselkursraten open.

“China is going through a massive and multifarious transformation of its economy. We expect, however, no ‘hard landing’, which has been spoken,” said the IMF chief. But, she added, it is likely, therefore, that developing countries are the IMF or other multilateral institutions for financial assistance because of the slower growth of the Chinese economy suffered.

More than an economic Problem

In a speech at the University of Maryland, United States, warned Lagarde that the Cooling of the Chinese economy, the imbalances in international economic relations deepen. China’s problems and the falling commodity prices affected the economies of other emerging countries, which are now a “new, harsh reality” is exposed to see. According to the manuscript said Lagarde: “growth rates fall, the capital flows have reversed and the medium-term Predictions are slumped.”

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China, the second largest economy in the world, was recorded in 2015 langsamstes growth for a quarter century ,while Brazil and Russia has slipped into a recession. The IMF now forecasts that the approximation of income in developing and emerging countries on the one hand and industrialised countries on the other hand, significantly slower than the prior ten years has been predicted.

“For millions of poor people will find it increasingly difficult to move forward. The newly emerged middle classes in their expectations disappointed,” said Lagarde. The consequences of the slowdown of global growth were not only economic, she said: “That also carries the risk of increasing inequalities and of protectionism and populism.”

Now the Rich demand

In addition, the IMF chief for a closer cooperation of the rich States with emerging economies, to Krisengefahren to ban and the global economy push. “We need a new partnership for growth,” she said. Lagarde cited studies by the IMF, according to which a decline in the growth rate in the emerging countries by one percentage point, the development in the industrial countries by 0.2 percent dampens.

Everything in the emerging markets, the lines, the effect on the developed economies, warned Lagarde. Finally, the emerging countries for the rich countries, not only as customers but also as an investment site is always important.

About 80 percent of global growth since the financial crisis of 2008 come from countries such as China, India and Brazil. Have the industrialized countries helped to overcome the crisis. When many emerging markets now have problems, were also the rich countries asked.

Help for the oil producer

In the face of falling oil prices, the IMF is concerned Förderstaaten his offered help. “The IMF is open to all members,” said Lagarde. At the same time, you, in some cases high government subsidies for the Oil industry to cut and the money instead for financial safety nets to use. “The subsidies are in this Situation, completely counterproductive,” she said.

Some countries, by the current Ölpreisverfall of up to 70 per cent are affected, would have a robust policy response to the crisis. She called the Ex-Soviet Republic of Azerbaijan as a positive example: “There is a good fiscal policy, the exchange rate is as a buffer.” In countries such as Nigeria was not yet so far. The IMF is ready to help: “are you a victim of external shocks”, she said and promised that it will be the part of the IMF no stigma give.

The Greeks are no dragons to be

Accusations that the IMF was of the Greek government to strict requirements for the organisation of the Athenian pension reform made, rejected the IMF head back. “We don’t want the dragon to be, and harsh demands, we know that Greece in the past few years, much has taken,” she assured.

The Greek pension system, added to the statement, had currently a ten percent of the gross domestic product to be fed: “This is not sustainable. What we need are policies that make it sustainable.” The average in European countries was 2.5 percent.

dk/kle (R/rtre/afpe/dpa)