Global Economic Recovery Will Take At Least A Decade To Materialize, Says IMF
Global Economic Recovery
Olivier Blanchard, the chief economist for the International Monetary Fund, says that the global economy will need at least a decade to recover from the 2008 financial crisis.
Blanchard told a Hungarian website that while it is “not yet a lost decade,” that it will “take at least a decade from the beginning of the crisis for the world economy to get back to decent shape.”
His view was underscored by recent data that point toward a recession in the 3rd quarter. Business activity slowed in the three months through the end of September, according to a survey of purchasing managers by Markit Economics, a financial data provider.
A group of economists surveyed by CNN believe that failure to avoid the fiscal cliff is a serious threat to tipping the economy back into recession and poses a greater threat than the European debt crisis. But, most also agree that the fiscal cliff can and will be avoided.
The End of Endless Economic Growth?
Martin Wolf argues in the Financial Times that the latest industrial revolution could spell the death knell for unlimited growth. According to Wolf’s piece,
there are challenges, including a reversal of the demographic dividend that came from the baby boomers and movement of women into the labour force; the levelling-off of educational attainment” that pose challenges to innovation and therefore to greater economic growth.
Moving to the City Does Not Equate To Upward Income Movement
New numbers released by the Global Development Report find that income does not neceearily increase when individuals move from rural to urban centers.