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Showing posts with the label IMF

Five Reasons the Russian Economy Won’t Return Soon

The Russian economy is in the tank and the IMF projects the economy will shrink 3.5% this year and land somewhere between +1% and -1.5% in 2016. The Russian economy has a number of things working against it, of which current escalating showdowns with the West is only one.  Problems areas such as diversification, politics, resources, time, and world economy are likely to hinder growth beyond that which is projected by the IMF.  Economic growth requires a number of elements to come together at once to create the right environment. Change in the Russian economy has been needed since the last drop in oil prices but little has been done to rectify the situation. Simply waiting for the oil prices to rise is not a wise strategy as new sources of energy hit the market. The Russian economy may be in this for the long haul as they are unable to make the reforms needed to change their economic structure. Lack of Economic Diversity:   The Russian economy is excessively reliant on it

Can the U.S. Be an Export Nation in a Difficult International Economy?

The IMF says the global economy will grow slower than expected this year while another recent announcement states that China superseded the U.S. in terms of purchasing power this year. Both are game changing events in what appears to be a long played out economic drama. Even though the news is not positive it does provide an opportunity for the U.S. to focus on improving its infrastructure to lower costs and retool for better managing international markets.    Slower International Economic Growth: International markets are expected to experience slow growth in the near future according to an October 7th report by the International Monetary Fund (IMF). The IMF initially thought the world economy may grow as high as 3.7% this year but have revised that number down to a weaker 3.3%. The slowing economy could make it more difficult for companies that are trying to export overseas to locations where the economy is lack luster. Growth in advanced economies and emerging eco

Including Investment and Labor Movement in Global Management Assessments

In today’s world, international business is a mainstay of everyday commerce and policy.   Products move across the globe and make their way into homes and lives of individuals and families at different places on the planet. Most statistics include the hard goods and services that traverse across borders but may be missing other tangible value. Dr. Predrag Bjelić discusses the inclusion of direct foreign investment and labor flow as important components of economic calculations.  Even though 2006 IMF data indicated that 75% of international trade is measured in goods the liberalization of trade has also brought with it services, investment and human capital. The latter two being something more difficult to concretely assess but should be included in the overall assessment. Understanding the flow of information along with the intellectual capital encourages a greater conception of global commerce and the antecedents to that commerce. Foreign Direct Investment (FDI) is an imp

Positive Economic Indicators Point to a Brighter 2014

The economy looks bright for much of the next year according to the Conference Board, Bloomberg’s poll of leading economists, and the International Monetary Fund. After a prolonged decade of slow down any positive market news is welcomed. However, with increases in multiple measurements one can get a better feeling for growing trends and how those trends will impact national investment opportunities. At present, the market appears to be increasing in growth and opportunity for both the U.S. as well as other nations which could encourage further growth. The Conference Board used broad based measures that included the labor market, interest rates, factory orders, stocks price, and construction. The Conference Board’s Leading Economic Index for the U.S. rose .8% in March to 100.9 indicating a substantial increase in the U.S. economy ( 1 ). The economy has put away its winder mitts and gloves and significant improvements in the market are possible. The Conference Board was n