The chief economist of the International Monetary Fund (IMF), Olivier Blanchard, said today he does not expect a hard landing in Brazil, India and China, despite the recent economic slowdown in these countries.

“The low growth in developed countries is affecting the emerging economies,” Blanchard said at a news conference.

“Besides, they also have some domestic issues, like political uncertainty affecting domestic demand in India, and more restrictive policies in Brazil in response to the earlier boom,” said the IMF’s chief economist.

“But we don’t see these developments as a sign of hard landing in any of these countries,” he said. “In fact, we see positive steps being taken in all these countries. But they suggest lower growth for some time, the lowest we’ve seen for some time.”

Source: Valor

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2 Responses to IMF: “No hard landing for China, Brazil, India”

  1. Jose Angel says:

    Why are these particular emerging economies now being singled out by the IMF in terms of slow growth prospects? might it be because they allowed their economies to overheat for several years? might it be because the conditions that allowed these three bric nations to expand economically some years ago are no longer there? like labor productivity, cheap transport costs, in the case of China and India, or the commodity boom in the case of Brazil?

    I think it means clearly that these countries have reached their limit and need to start making changes in their economic policies in order to find the path to growth once again. Dilma and Mantega may not understand it, they, just as the chinese leaders, keep pouring government money into their economy, but that is not the problem anymore, credit is exausted, industries have become uncompetititive, protectionism means many things are too expensive. Time to make some changes.

  2. alexNY says:

    In the case of brazil , from 7.5% to 2.5% to 1.5 looks to me like hard

    And the government forecasts for 2013 of 4% is pure wishfull thinking and deceiving investors and the public

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