Global Warning

"No man is an island." -- John Milton

"No country can go it alone"  in a time of international economic challenges. -- Christine Lagarde, IMF Managing Director

   The U.S. economy may be healthy now and may help support other nations in the Americas, but globally, growth is "modest and uneven," and these "uncertain conditions" could stunt U.S. economic growth. That's a summary forecast put out by both the International Monetary Fund and the Federal Reserve Board this week.
   The IMF Friday echoed a report by the Fed's Open Market Committee Thursday, noting that IMF member nations are facing "a rapidly changing and uncertain world."
   The forecast on growth in the Western Hemisphere comes just one day after the U.S. Fed shelved its plan to end its stimulus program, citing "uncertain conditions" around the world that likely would impact the U.S.
   In Latin America and the Caribbean, the region is dealing with "a protracted slowdown" and the Canadian economy is losing momentum, the IMF said.
   Moreover, China's expected slowdown as it moves to rebalance its growth is creating "spillovers," according to the IMF, and all these changes "pose challenges, particularly for emerging and low-income developing countries," whose prospects have dwindled most.
   In a press briefing, IMF Managing Director Christine Lagarde emphasized that nations must "watch out for spillovers," as their central banks consider their policy decisions. The world economy is in transition, she added, and these changes must be managed carefully.
   Moreover, "international cooperation is key," Lagarde said, whether the challenges are economic spillovers, the refugee crisis, international development or climate change, "no country can go it alone."