ASTANA, Kazakhstan /PRNewswire/
--
("World economy and
Integration," "Infrastructure," "Green economy and Innovations,"
"Inclusive growth and human capital," "Business and capital
markets")
Astana Economic Forum
2015 was held on 21st and
22nd of
May. A central theme of the Forum was"Infrastructure - a
driver of sustainable economic growth."
To view the
Multimedia News Release, please click:
http://www.multivu.com/players/uk/7568051-recommendations-astana-economic-forum/
World economy and
Integration
The world economy is
facing major cross currents - oil prices, exchange
rate adjustments, divergence of monetary policies and the legacies
of the Great Recession of 2009. Global economic growth remains weak
and moderate while potential output growth has declined.
The decline in the price
of oil has led to a large reallocation of real income
from oil exporters to oil importers. For the last group of
countries, this increase in real income is leading to an increase
in spending. The lower oil price benefits the U.S. in particular,
where the positive consumption effect largely dominates the
negative investment effects in the oil industry. It could make the
U.S. the dominant engine again for world output, in particular in
its role as consumer of last resort. This could lead to a
resumption of large external imbalances, with the U.S. again
approaching a current account deficit of up to 5 percent of
GDP.
For the oil
exporters, the time of low oil prices, perhaps, is a good time for
structural and institutional reforms to diversify their economies
and increase robustness of the long-run economic growth.
The volatility of exchange
rates has been unusually large while divergence in monetary policy
is observed. From May
2014 to April
2015, Euro-Dollar moved from 1.34 to 1.08 - this exchange
rate has improved the Eurozone's competitiveness and growth
prospects. The fact that the U.S. is close to exit from the zero
lower bound may lead to an increase in interest rates while in the
Eurozone and in Japan we're
clearly very far away from it. So, this divergence in monetary
policies explains most of the movement in exchange
rates.
Legacies of the Great
Recession are still in place in many countries. There
is still a downward pressure on domestic demand and growth from a
weak banking sector and high levels of debt.
Infrastructure
In addition to
consumption, infrastructure could be a key driver of the resumption
of real activity growth and job creation in advanced and emerging
economies going forward. Read more…http://www.multivu.com/players/uk/7568051-recommendations-astana-economic-forum/
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Video:
http://www.multivu.com/players/uk/7568051-recommendations-astana-economic-forum/