Economic Outlook Bleak Due to 2008 Global Financial Crisis

PORT MORESBY - Global recovery from the 2008 financial crisis remains uneven and is weaker than expected. Deputy Managing Director for the International Monetary Fund, Naoyuki Shinohara was speaking from the IMF World Economic Outlook report, which gave projections on the global and regional economy.

Shinohara said the IMF projects of the world economy will grow by 3.3 per cent this year and will pick up modestly next year by 3.8 per cent. He said while the global outlook and recovery differs from countries and regions, the impact of the global financial crisis is still felt by advanced nations in terms of debt and unemployment.

Slow growth is projected for emerging and developing markets due to weaker medium-term prospects in investments.

Deputy Director Shinohara made these statements at the opening of the 50th South East Asian Central Bank (SEACEN) Governors conference in Port Moresby today.

The Bank of Papua New Guinea has been a member of the SEACEN since 2005. A press release from the Bank of PNG stated that theme of the conference is ‘Regional Initiatives in the Midst of Vulnerabilities’.

The conference and the 34th Meeting of the Board of Governors tomorrow will focus on three particular areas:

(1) Reconciling domestic and cross-border considerations in the use of macro-prudential and capital flow management tools. (2) Steps to further the development of regional bond markets and their implication for monetary policy strategies and (3) issues and challenges associated with increased integration of emerging market banking systems. [EMTV]