WASHINGTON (Reuters) – Policymakers scrambling to keep the world economy from settling into the “new mediocre” of sluggish growth can no longer rely on global trade to do the heavy lifting.
International trade helped the global economy tide over rough spots over two decades before the financial crisis, when it grew nearly twice as fast as economic output, but this engine is running out of fuel.
WASHINGTON (Reuters) – The International Monetary Fund’s member countries on Saturday said bold action was needed to bolster the global economic recovery and they urged governments not to squelch growth by tightening budgets too drastically, although Germany poured cold water on the idea of a new global “crisis.”
With Japan’s economy floundering, the euro zone at risk of recession and even China’s expansion slowing, the IMF’s steering committee said focusing on growth was the priority.
WASHINGTON, Oct 10 (Reuters) – Swiss National Bank (SNB)
Chairman Thomas Jordan vowed on Friday to take whatever steps
were necessary to fend off deflation in the face of a weak
global economy, worsening euro zone outlook and falling
Jordan said policymakers were closely watching the risk of
negative inflation rates, or deflation, given a deterioration in
the economy of the euro zone, Switzerland’s main trading
WASHINGTON (Reuters) – Alarmed by faltering euro zone growth, top finance officials from around the globe on Friday were expected to press their European peers for action to avert a recession and ward off deflation.
The International Monetary Fund, which cut its global growth forecasts for the third time this year earlier this week, said Europe’s weakness was a matter of particular concern.
WASHINGTON (Reuters) – German Finance Minister Wolfgang Schaeuble said on Thursday more government spending was a wrong cure for the euro zone’s weak growth and dismissed the prospect of recession for Europe’s biggest economy.
“We don’t have a recession in Germany, we have a weakening of growth,” he said at a Bertelsmann Foundation event on the sidelines of World Bank and International Monetary Fund meetings.
BRASILIA/WASHINGTON (Reuters) – The United States will pay Brazilian cotton producers $300 million to settle a decade-old dispute over cotton subsidies, two officials familiar with the settlement said on Tuesday, the first concrete step to repair ties hurt by an espionage scandal.
The agreement will be formally signed on Wednesday morning in Washington after Brazilian Agriculture Minister Neri Geller and Foreign Minister Luiz Alberto Figueiredo traveled to the U.S. capital to finalize details.