Most economies are experiencing a growth slowdown with some of these countries facing possible recessions, and a lack of capacity to deal with these challenges.
David Lipton, the International Monetary Fund’s deputy managing director, said this at the World Economic Forum, held in the Swiss tourist town of Davos.
Lipton said the IMF expects a global economic slowdown, sooner than expected. He went further and said when the downturn comes, most countries will not be as well equipped to deal with it as they were a decade ago.
US shutdown has a small impact
In his speech, Lipton pointed out prospective risks on the global economy mainly caused by trade tensions and tightening financial conditions. Lipton underlined the weak part of the countries as their inability to deal with the expected slowdown.
Touching upon the government shutdown in the US, he underlined how small the impact has been, but added the longer the shutdown lasts, the bigger the impact.
Confident Turkish finance minister, ‘our economy is growing’
Turkey this year is being represented by Turkish Treasury and Finance Minister Berat Albayrak. He also spoke on his country’s economic prospects. Attending the meeting titled Market Outlook of Developing Countries, he replied to a question on the future of the Turkish economy.
Confidently answering about high prospects for the Turkish economy, Albayrak said: “Turkey has strengthened its economic immune system. Turkey is the only country which has stability. Our economy also has unique advantages in Davos,” added Albayrak. He also pointed out that despite the problems in its region, the Turkish economy continues to grow.
Turkey hosts four million refugees, Albayrak
Touching on regional problems, Albayrak said Turkey has been handling problems in its region. He drew attention to the Syrian war and how his country has been home to four million refugees. He said Turkey was the most stable country in its region.
Economic basis of Turkey is strong says Albayrak
When reminded about President Trump’s latest threats to the Turkish economy, Albayrak said Turkey has a strong economic basis.
Reminding Turkey’s passing to presidential system despite the economic hardness emerged in the last September, Turkey has produced solutions to problems in a speedy way.
What had been said on Turkish Economy in IMF’s 2019 updated report?
An IMF report had said Turkey’s negative economic woes are bound to rage on unabated. The body has also revised the country’s growth rate.
This comes on the back foot of continued harsh criticism against the governing Justice and Development Party (AKP) on the way it rules the country. Some citizens have lashed as the lavish lifestyle of the party leaders and wrong economic decisions have been taken of late.
The latest, as in January 2019 World Economic Outlook Update report, titled A Weakening Global Growth, in which the 2019 and 2020 Gross National Product (GNP) of Turkey has decreased 0.2 and 0.1 respectively and the growth rate and prediction determined at 3.5 and 3.6.
What next for Europe?
The leaders of Germany, Italy and Spain each offered a different view on the future of Europe when they delivered their messages to participants.
“A sense of despair is spreading,” said Italy’s Giuseppe Conte. “Even the middle class is facing poverty. Everyone feels that tomorrow will be worse than today. Our experience might be an indication of what Europe will look like tomorrow,” Conte said.
Conte proposed urgent interventions to “heal our severe social wounds, including a citizen income and a flexible retirement age.
“I stand here before you as someone who believes fully in the international order,” German Chancellor Angela Merkel said.
‘We forgot the lessons learnt from the 2008 financial crisis’
Spain’s Prime Minister Pedro Sánchez started his speech by warning about the danger of forgetting lessons learnt from the 2008 financial crisis.
And a key theme of his message was to always remember the economy should service of the people.
“Citizens need to feel their fates are in their own hands, that effort, talent, courage count for something, that they can make autonomous life plans,” he said.
Three political leaders took centre stage at the Congress Hall on the third day of the meeting in Davos. Each of them outlined their vision for the future of Europe.
For two of them – Italy’s Conte and Spain’s Sánchez – speaking for the first time, having been appointed as Prime Ministers last year. To some extent, they feel like Europe’s next generation of leaders.
But for Merkel – who has already announced she will step down in 2021 has been the Federal Chancellor of Germany since 2005, it felt more like the start of a goodbye.
What is WEF?
The World Economic Forum (WEF), based in Colognny-Geneva, Switzerland was founded in 1971 as a not-for-profit organisation. It gained formal status in January 2015 under the Swiss Host-State Act, confirming the role of the Forum as an International Institution for Public-Private Cooperation. The Forum’s mission is cited as “committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas.”
The WEF is best known for its annual meeting at the end of January in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland. The meeting brings together some 2,500 top business leaders, international political leaders, economists, celebrities and journalists for up to four days to discuss the most pressing issues facing the world.
The organization also convenes some six to eight regional meetings each year in locations across Africa, East Asia and Latin America, and holds two further annual meetings in China, India and the United Arab Emirates. Beside meetings, the organization provides a platform for leaders from all stakeholder groups from around the world – business, government and civil society – to come together. It also produces a series of research reports and engages its members in sector-specific initiatives.