World Economic Outlook, April 2010: Rebalancing Growth
World Economic Outlook, April 21, 2010
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Bibliographic details
- Published: April 21, 2010
- Series: World Economic Outlook
- DOI: https://doi.org/10.5089/9781589069152.081
Overview
- The global economic recovery is progressing better than expected, but the speed of recovery varies.
- Some countries, notably in Asia, are off to a strong start, while growth in others is constrained by lasting damage to the financial sector and to household balance sheets.
- The issue explores how to spur job creation in the face of likely high and persistent unemployment in advanced economies, and how countries that previously ran large current account surpluses or deficits can promote growth by rebalancing external and domestic demand.
Major findings and analysis
- Recovery trajectory:
- Recovery is uneven across countries and regions.
- Strong starts in some Asian economies contrast with constrained recoveries elsewhere due to financial-sector damage and weakened household balance sheets.
- Labor market outlook:
- Advanced economies face the challenge of high and persistent unemployment.
- Job creation is likely to be a central policy priority in the wake of the Great Recession.
- External and domestic demand rebalancing:
- Countries that previously ran large current account surpluses or deficits need to promote growth by rebalancing external and domestic demand.
- Fiscal and financial constraints:
- There is a need to contain and reduce public debt.
- Repair and reform of the financial sector are necessary to support a durable recovery.
Policy recommendations
- Ensure a smooth transition of demand while maintaining supports that promote growth and employment.
- Contain and reduce public debt in a manner consistent with supporting growth and employment objectives.
- Repair and reform the financial sector to remove constraints on growth and restore healthy credit flows.
- Implement targeted measures to spur job creation in advanced economies where unemployment is likely to remain high and persistent.
- Encourage policies that rebalance external and domestic demand in economies with large prior current account surpluses or deficits.
World Economic Outlook, April 2010: Rebalancing Growth — April 21, 2010