Global growth rate is going to witness a rise in 2015-16, says a latest World Economic Report released by International Monetary Fund on January 20, 2015.
By Sai Nikesh D
According to the report, the percentage of global growth rate is going to rise to 3.7% in 2016, when compared to that of 3.5% in 2015, which is higher than that of 3.3% growth rate in 2014.
“At the country level, the cross currents make for a complicated picture,” says Olivier Blanchard, IMF Economic Counselor and Director of Research, adding that this would turn good news for the countries linked to Euro and Yen and bad news for the countries linked to US Dollar.
In advanced economies, the growth is projected to rise to 2.4% in 2015 and 2016. The growth percentage of the countries is as follows: In United States the projection stands at 3.6% in 2015 and 3.3% in 2016, in Euro area (Germany, France, Italy, Spain), the projection stands at 1.2% in 2015 and 1.4% in 2016, followed by Japan (0.6% in 2015, 0.8% in 2016), United Kingdom(2.7% in 2015, 2.4% in 2016), Canada (2.3% in 2015, 2.1% in 2016), among others.
Coming to Russia, the percentage of projection is very weaker and it stands at 3.0% in 2015, and 1.0% in 2016.
In the case of Emerging and Developing Europe region, the projection percentage stands at 2.9% in 2015 and 3.1% in 2016. In the case of Middle East, North Africa, Afghanistan and Pakistan, the projection percentage in 2015 stands at 3.3% and rises by 0.6% to 3.9% in 2016.
Among the world markets, the statistics in the report suggest that the emerging markets of Asia stand top in the growth rate. Next in the list will be the low income developing countries for which projection stands at about 5.9% in 2015 and 6.1% in 2016.
On a whole, the report says that the decline of oil prices, downfall of Euro and Yen currencies are the major factors that contributed for the rise of global growth rate. This will come as an encouragement to the importers of oil and commodities in the regions linked to Euro and Yen, whereas the exporters in the region will have to face tough times ahead.
This article was published in The Dollar Business on January 20, 2015.