IMF Global Growth to Slow

IMF Global Growth to Slow

by  Ashley Clark, Director

The International Monetary Fund (IMF) has issued a warning that growth in global economies will slow towards the end of the year.  The IMF suggests that slowdown in the US property market alongside weaker financial services sectors will restrict confidence and therefore growth.

We suggest that many western nations are looking at significant public spending cutbacks as a result of concerns over their credit ratings and sovereign debt.  Greece needing a €100bn loan earlier this year due to lack of confidence is a position no other nation wants.  They have made sweeping cut backs in Greece causing widespread unrest and even riots in Athens.  Across nations, cutbacks will impact on internal economies and therefore, global economies over the next year or two.

Many countries currently have low internal interest rates supposedly to try and stimulate their economies.  We suggest this is dangerous for consumers to rely on and should clear personal debt sooner rather than later.  In fact, we suggest, by design, Governments are moving us toward a position to higher inflation as the only way to “repay” huge public sector debts.  

Many western countries will never be able to afford to repay record debt.    By allowing inflation to build by stealth, over a longer period this has the effect of devaluing public sector debt without repaying it. 

This is what we expect to come.

Useful links:

Contact us - Book Callback - Free Consultation - Newsletter - Money MOT - Discounts

Back to News Summary