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IMF raises growth forecasts, warns

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The IMF raised its global growth forecasts at annual meetings in Washington but warned that Trump’s tariffs, AI‑fuelled asset bubbles and shadow‑banking risks could trigger sharp market corrections.

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premnsikka.bsky.social
UK faces highest inflation in G7 this year and next, IMF warns.

Biggest cause is profiteering led by energy, water and food businesses. No govt checks it.

Real average wage stuck at 2008 level. 1% have more wealth than 70% of the population combined. Govts needs to remove cash from the rich.
UK faces highest inflation in G7 this year and next, IMF warns
According to fund’s World Economic Outlook, Britain is on course to average 3.4% this year and 2.5% in 2026
www.theguardian.com
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Reposted by Timothy D. McBride

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New York Times
Global Economic Growth Remains Sluggish as Trump's Tariff Threats Loom

The IMF said the impact of trade tensions has been limited so far, but it expects growth to slow.

Global Economic Growth Remains Sluggish as Trump's Tariff Threats Loom
Reposts 16 17h
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pgourinchas.bsky.social
Our October WEO report is out. Global growth is expected to slow to 3.2% this year and 3.1% next year, defying fears of a sharper slowdown after the US tariff surge. Yet, this resilience masks deeper fragilities in trade, AI, and fiscal policy. imf.org/en/Blogs/Art...
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pgourinchas.bsky.social
To secure growth, countries must focus on what works: clear trade rules, fiscal discipline, robust policy frameworks, and investments in productivity. The alternative is slower, more volatile economic activity. www.imf.org/en/Publicati...
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michaelpettis.bsky.social
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By now cutting back on investment in the involuted industries, Beijing must decide where else to increase investment in order to achieve the GDP growth target. To the extent that it is in infrastructure. this should boost domestic demand and keep deflation at bay for a few years.
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michaelpettis.bsky.social
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To the extent that it is in other manufacturing sectors, this will mostly shift price-cutting from the involuted manufacturing sectors to the non-involuted sectors, in which case we are likely to see deflationary pressures revive, perhaps next year.
bsky.app/profile/mich...
michaelpettis.bsky.social
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Yicai: "China has released new growth stabilization measures for 10 major industries: steel, nonferrous metals, petrochemical, chemicals, building material, machinery, automobile, electrical equipment, light industry, and electronic information."
www.yicaiglobal.com/news/china-i...
China Unveils New Measures to Steady Growth Across 10 Key Industries
www.yicaiglobal.com
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michaelpettis.bsky.social
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So is deflation behind us? It depends on how China balances the fight against involution. Remember that involution was a consequence of Beijing's response to the sharp drop in property investment after 2021-22. Because it couldn't let overall investment growth decline if it...
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pgourinchas.bsky.social
Other forces are at play: AI investment is booming, echoing the dot-com era, while China's property sector struggles and fiscal pressures mount. These dynamics create a complex, uneven recovery.