FAILED economic plans for such countries as Argentina, Ecuador and Somalia have got watchers of the global economy worried that the road ahead is bumpier than expected. The IMF had, in its 2019 World Economic Outlook down-graded global economic forecasts with such chilling words as “precarious” and “uncertain” to describe the headwinds affecting these and other economies it has been monitoring in the course of the year.
The civil society organization, Jubilee USA’s Eric LeCompte thinks the Fund “got Argentina’s debt sustainability wrong and failed to prevent most of their financing being lost to capital flight” just as its leadership and technicians were caught up in conflicting policy recommendations for Ecuador, tom that country’s detriment.
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The IMF Global Financial Stability Report equally issued concerns over high debts and risky investing. It worried that protracted trade tensions between the world’s two biggest economies as well as other systemically important ones in the Middle East and elsewhere are causing revenue losses and bringing down trade statistics and economic growth rates around the globe. What is worse, the Fund is bothered that developing countries seem to be going back to the bad old days of binge borrowing.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.