FREE Forex Trading Course
Deposit $250 in an FXCM Micro account and receive the DailyFX Power Course FREE OF CHARGE. FXCM Micro is a discount brokerage service offering super low spreads, 1k lot sizes, and flexible 400:1 leverage. Click below to learn more.
Currency trading involves risk of loss.
Leverage magnifies both gains and losses.
There is a good progress in the evolution of the global economy at present, even though worries are being spread by a spike in food prices, and concerns saying the growing demand will bring inflation problems to many countries, as reported by the International Monetary Fund's leading economists on Thursday.
Simon Johnson, director of research at IMF, stated that the global economic boom is going very well, and explained a variated range of topics based on it.
He also stated that the IMF are ready to update and modernize their predictions for the world's economic future when a revision will be issued on July 25th. A forecast made in April by the IMF affirmed the global economy will alomst reach 5.0 % for 2007 and 2008 alike.
Since then, the stronger demand happening in Europe became more clear, with a few changes of structure in Germany, and the adoption of the UE currency, the euro started to pay off, added Johnson. He Admired the European Central Bank for controlling the expectancies concerning inflation, without greatly affecting the economic growth of the members.
Johnson also reported that although inflation is a problem, until now it didn't overcome the expectations, except in the UK, and noted that both Bank of England and Bank of Canada had the interest rates raised lately to maintain expectatons.
The prices for food rose a lot over the predicted limit in many countries, mostly due to a shift in ethanol production, as Johnson completes.
Besides the World Economic Outlook, the IMF seeks to upgrade its outlook for financial markets developments. In April, it told journalists the markets are going through low interest rates. IMF is concerned over the negative profit in the US mortgage stock and expressed a dilemma regarding the evolution of the problems in the stated niche that could affect the financial system.
Johnson and the IMF still believe it's still divided. They also noted some growing interest for riskier corporate debts, but the main concern is the lack of information on how companies are exhibited to the subprime market.
04:39
Posted on Jul-26-2007
