High Debt Hampers Countries' Response to a Fast-Changing Global Economy
April 10, 2019--Economic growth is slowing and public debt remains high across the world. Meanwhile, demographic changes and technological advances are reshaping the global economy.
Everyone's opportunities for a good education, along with their job prospects, healthcare, and retirement income depend on the tax and spending choices governments make as they respond to these challenges.
What should policymakers do?
view the IMF-Fiscal Monitor: Curbing Corruption
IMF-Global Financial Stability Reports-Vulnerabilities in a Maturing Credit Cycle
April 10, 2019-- Description: The April 2019 Global Financial Stability Report (GFSR) finds that despite significant variability over the past two quarters, financial conditions remain accommodative. As a result, financial vulnerabilities have continued to build in the sovereign, corporate, and nonbank financial sectors in several systemically important countries, leading to elevated medium-term risks.
The report attempts to provide a comprehensive assessment of these vulnerabilities while focusing specifically on corporate sector debt in advanced economies, the sovereign-financial sector nexus in the euro area, China's financial imbalances, volatile portfolio flows to emerging markets, and downside risks to the housing market. These vulnerabilities require action by policymakers, including through the clear communication of any changes in their monetary policy outlook, the deployment and expansion of macroprudential tools, the stepping up of measures to repair public and private sector balance sheets, and the strengthening of emerging market resilience to foreign portfolio outflows.
IMF-World Economic Outlook, April 2019
Growth Slowdown, Precarious Recovery
April 10, 2019--After strong growth in 2017 and early 2018, global economic activity slowed notably in the second half of last year, reflecting a confluence of factors affecting major economies.
China's growth declined following a combination of needed regulatory tightening to rein in shadow banking and an increase in trade tensions with the United States. The euro area economy lost more momentum than expected as consumer and business confidence weakened and car production in Germany was disrupted by the introduction of new emission standards; investment dropped in Italy as sovereign spreads widened; and external demand, especially from emerging Asia, softened. Elsewhere, natural disasters hurt activity in Japan. Trade tensions increasingly took a toll on business confidence and, so, financial market sentiment worsened, with financial conditions tightening for vulnerable emerging markets in the spring of 2018 and then in advanced economies later in the year, weighing on global demand. Conditions have eased in 2019 as the US Federal Reserve signaled a more accommodative monetary policy stance and markets became more optimistic about a US-China trade deal, but they remain slightly more restrictive than in the fall.
view the IMF World Economic Outlook, April 2019 Growth Slowdown, Precarious Recovery
Weak Spots in Global Financial System Could Amplify Shocks
April 10, 2019--In the United States, the ratio of corporate debt to GDP is at record-high levels. In several European countries, banks are overloaded with government bonds. In China, bank profitability is declining, and capital levels remain low at small and medium-size lenders.
Vulnerabilities like these are on the rise across advanced and emerging market economies, according to the IMF's latest Global Financial Stability Report. They aren't all setting off alarm bells just yet. But if they continue to build, especially with still-easy financial conditions, they could amplify shocks to the global economy, raising the odds of a severe economic downturn a few years down the road.
ETF investor inflows tumble 28% in first quarter
April 10, 2019--Lyxor and State Street Global Advisors among worst performers so far in 2019
ETF investor inflows tumble 28% in first quarter
This year's battle between providers of exchange traded funds to drum up new business has made an anaemic start with worldwide investor inflows down more than a quarter in the first three months.
ETFGI reports assets invested in the Global ETF and ETP industry reached a new record US$5.40 trillion at the end of March 2019
April 10, 2019--ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed Globally gathered net inflows of US$37.48 billion in March, bringing year-to-date net inflows to US$99.14 billion. Assets invested in the Global ETF/ETP industry finished the month up 1.42%, from US$5.32 trillion at the end of February, to US$5.40 trillion, according to ETFGI's March 2019 Global ETF and ETP industry landscape insights report, an annual paid-for research subscription service.
(All dollar values in USD unless otherwise noted.)
Highlights
Assets invested in the Global ETF/ETP industry reach a new record US$5.40 Tn.
April 11th marks the 19th anniversary of the listing of the first ETF in Europe.
Assets invested in the Global ETF/ETP industry rise 1.41% in March.