IMF Says Global Growth Reflection of Emerging vs Advanced Economies

The International Monetary Fund said Wednesday that the moderate global growth in the first half of the year is reflective of two elements: a slowdown in emerging economies and weak recovery in advanced ones.

“In an environment of rising financial market volatility, declining commodity prices, weaker capital inflows and depreciating emerging market currencies, downside risks to the outlook have risen, particularly for emerging markets and developing economies,” the IMF said in a report.

The analysis comes at a time when global markets have been in flux, with U.S. crude prices closing up nearly 2 percent on Wednesday after falling as much as 4 percent. This move came a day after crude futures settled down nearly 8 percent after a massive three-day rally.

Equities across the globe have also been taken for a ride, with U.S. stocks closing more than 1 percent higher across the board a day after plunging more than 2 percent.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza