Chinese-Dragon
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The IMF says world economies are separating into three different speeds:
- China, India growing fastest
- U.S. and Japan have moderate growth
- Europe slowest
Hong Kong (CNN) -- We live in a three-speed economic world, according to the International Monetary Fund. Nations that enjoy the fastest growth include China, India and other emerging countries. Moving at a moderate pace are the United States, finally seeing the light at the end of the 2008 financial crisis tunnel, and Japan, riding a resurgence thanks to Prime Minister Shinzo Abe's vow for a 2% inflation target. But economic growth across most of Europe is still growing at a crawl.
Earlier this month, IMF managing director Christine Lagarde, said this current three-speed world is setting up financial imbalances that could pave the way for future crises. And just this week, against this backdrop of divergent growth rates, the IMF cut world economic growth for 2013 from 3.5% to 3.3%.
But Olivier Blanchard, IMF chief economist, told CNN's Richard Quest that there is reason to be hopeful.
"The reason to be optimistic is to look at what has happened in the U.S. For a while, the question was 'Where is growth going to come from?'. And what you see is nearly 100 flowers blooming,"
"People are becoming more optimistic. The fact that there was no housing construction means that we don't have enough houses, so housing is doing well. Monetary policy is aggressive. People believe it. Banks are improving."
Fast, medium or slow: Which economic speed is your country? - CNN.com
- China, India growing fastest
- U.S. and Japan have moderate growth
- Europe slowest
Hong Kong (CNN) -- We live in a three-speed economic world, according to the International Monetary Fund. Nations that enjoy the fastest growth include China, India and other emerging countries. Moving at a moderate pace are the United States, finally seeing the light at the end of the 2008 financial crisis tunnel, and Japan, riding a resurgence thanks to Prime Minister Shinzo Abe's vow for a 2% inflation target. But economic growth across most of Europe is still growing at a crawl.
Earlier this month, IMF managing director Christine Lagarde, said this current three-speed world is setting up financial imbalances that could pave the way for future crises. And just this week, against this backdrop of divergent growth rates, the IMF cut world economic growth for 2013 from 3.5% to 3.3%.
But Olivier Blanchard, IMF chief economist, told CNN's Richard Quest that there is reason to be hopeful.
"The reason to be optimistic is to look at what has happened in the U.S. For a while, the question was 'Where is growth going to come from?'. And what you see is nearly 100 flowers blooming,"
"People are becoming more optimistic. The fact that there was no housing construction means that we don't have enough houses, so housing is doing well. Monetary policy is aggressive. People believe it. Banks are improving."
Fast, medium or slow: Which economic speed is your country? - CNN.com
