Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

IMF chief warns of 'lost decade' of global growth

IMF chief warns of 'lost decade' of global growth

The world is less than half way through a lost decade of volatility and below trend global growth the International Monetary Fund’s chief economist Olivier Blanchard has said.

‘It’s not yet a lost decade… but it will surely take at least a decade from the beginning of the crisis for the world economy to get back into decent shape, Blanchard told website Portfolio.hu.

While the eye of the storm remains Europe, he warned that the crisis had revealed global structural weaknesses that would impact on growth prospects for the foreseeable future.

‘Japan is facing a very difficult fiscal adjustment too, one which will take decades to solve. China has probably taken care of its asset boom but has slower growth than before, but we do not forecast any really hard landing.’

He said debt restructuring would also be the dominant force impacting on the US economy but that this had to be achieved at a slow enough pace to sustain growth, walking a ‘narrow middle path’ between excess debt and austerity.

‘If you do it too slow, the market thinks you are not serious, if you do it too fast, you kill the economy. For each country you have to find the right path of consolidation.’   

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play On the Road Challenge: Clay pigeon shooting with Thesis' Lansdowne

On the Road Challenge: Clay pigeon shooting with Thesis' Lansdowne

Eleanor Mahmoud goes clay shooting at the National Clay Shooting Centre with Sam Lansdowne from Thesis Asset Management

Play AA-rated Flood on gov't bonds: 'the maths doesn't add up'

AA-rated Flood on gov't bonds: 'the maths doesn't add up'

He also addresses why his Newton Multi-Asset Income fund has such a high cash weighting and why he sees renewables as such a good opportunity.

Play AAA-rated Ali: Identifying the peripheral European plays

AAA-rated Ali: Identifying the peripheral European plays

Citywire AAA-rated Tawhid Ali thinks that plenty of good stocks in the European periphery are being thrown out with the proverbial bath water.

Read More
Your Business: Cover Star Club

Profile: Brewin's Cardiff boss on the Welsh opportunity

Profile: Brewin's Cardiff boss on the Welsh opportunity

Prior to becoming head of Brewin Dolphin Cardiff, Welshman David Myrddin-Evans had only previously visited the city to watch the rugby.

Wealth Manager on Twitter