Business

IMF asks countries to not mix geopolitical tensions with economic decisions

The International Monetary Fund and the World Bank are holding talks with the United States of America’s Washington as a part of their annual meeting. Several leaders of the nations throughout the world are participating in the meet. The main officials and top rank holders of the International Monetary Fund and World Bank are making steady statements.

The committee of the World Bank suggests decisions for the various governments taking into the priority of the orders and operations that follow the orders. The committee suggested that the inflation is one of the most important parameters to measure the economic growth of the nation that in turn will affect the global growth. The low values of inflation and the policy changes due to political interferences will only prove to pull down the global growth otherwise there is no problem in the economic outlook of a nation.

The committee made a mention that almost all the countries of the world are not letting chances for high inflation and only the little occurrences of high inflation would bring about more cash flow and in turn create more employment opportunities especially in the economically backward nations. One should not be very self-concerned when it comes to medium-term risks as that might only lead to long-term risks.

The committee in the mention of geopolitical tensions actually means the kind of tensions that is prevailing between the United States of America and North Korea. Donald Trump’s statements over the nuclear deal disagreements with Tehran, India and China conflict over Doklam and many. The committee made such statement as the reports, facts and figures very clearly state that the countries are facing an economic slowdown due to the tensions existing between them and that the countries must not be too self-admired and resistant when it comes to decisions and plans pertaining to the economic growth of the country.

These statements are made by the IMFC, i.e., The International Monetary Fund’s steering committee that consists of a high-profile panel of ministers from 24 countries around the globe and the top banking officials from the central banks. They also gave suggestions on decisions that lead to a win-win situation, to have and maintain exchange rates that are not competitive but flexible in nature. The committee also made a valid point stating that the trade only leads to a strengthening of the economies and that more trade agreements have to be signed among the nations to march together to achieve greatness.