International Monetary Fund

As public debt in Latin America’s seven largest economies rises to an average of 55% of GDP, the urgency for lower deficits and stronger fiscal frameworks becomes evident. The region is vulnerable to domestic and global shocks, like from commodity prices. While the region increased needed social spending, fiscal policy is not helping to boost productivity and accelerate growth as much as it could, as new analysis in the IMF’s Regional Economic Outlook shows. Countries have announced ambitious fiscal consolidation plans, but political support is crucial for success. Strengthening fiscal rules and ensuring transparency in fiscal management is vital for countries to rebuild their capacity to borrow and to address future economic shocks. Read more: https://lnkd.in/dVVQtPkv

Industrial policy is experiencing a renaissance in Europe, with state aid spending reaching unprecedented levels of 1.5% GDP. Our latest blog examines the conditions for success, highlighting the crucial role of coordination across EU member states: https://lnkd.in/eytYkabU

From a small unit to advise on budgets and tax policy, to a leading incubator for ideas and practical tools in everything from fiscal rules to climate finance, the IMF’s Fiscal Affairs Department has come a long way in the 60 years since it was founded. Every step of the way, FAD has been committed to deepening the knowledge and capacity of the IMF’s member countries in the ever-evolving realm of fiscal policy. https://lnkd.in/ebu6Kx_Z

Corporate social responsibility drives the IMF's mission beyond economic support—we’re committed to sustainability, inclusion, and community engagement worldwide. The IMF’s adaptive strategies support global green and digital transitions. Explore more from our 2024 Annual Report: https://lnkd.in/ejNStSDX

Industrial policy coordination matters for Europe's future. Success requires more than increased spending – it demands strategic implementation. Our analysis shows state aid has tripled over the past decade, now reaching 1.5% of GDP. While unilateral approaches often create unexpected challenges through regional spillovers, coordinated policies help preserve trade benefits and ensure fair competition. Learn more about how Europe can optimize its industrial policy impact: https://lnkd.in/eytYkabU

Alfred Kammer, Director of the IMF’s European department, is in Vilnius today to take part in the Annual Economics Conference organized by Lietuvos bankas | Bank of Lithuania, celebrating the 10th anniversary of the euro introduction in Lithuania in 2025.   In his speech https://lnkd.in/ec6iuDBh, he focused on Europe’s policy options for growth and resilience and presented new IMF research on industrial policy https://lnkd.in/dMmdJMp7. Europe is lagging behind the U.S., in productivity and in income per capita. Under current policies, IMF projections suggest that Europe’s per capita income gap with the U.S. will stay virtually unchanged through to the end of the decade.   But projections are not destiny – most of what is holding back Europe’s growth can be fixed through policy changes. And the number one priority for policymakers should be to boost productivity.   Improving Europe’s productivity starts with improving business dynamism. Three  ways to do so are through: 1) deepening the single market, 2) doing industrial policy the right way, and 3) pursuing domestic structural reforms. Find out more reading the new #IMFBlog on "Europe Needs a Coordinated Approach to Industrial Policy" https://lnkd.in/eytYkabU International Monetary Fund Gediminas Šimkus Gitanas Nausėda Rimantas Sadzius Ingrida Petraitiene Inga Braželienė Helge Berger Manuela Goretti James John Diego Cerdeiro Stephan Danninger Sebastian Weber Oya Celasun Kristina Kostial

The world’s worst housing affordability crisis in more than a decade spilled across some of the largest advanced economies and contributed to widespread anger and resentment about economic conditions, Deniz Igan writes in F&D magazine. https://lnkd.in/eT5qX8tw

People buy real estate abroad for various reasons: investment, vacation, for children studying abroad – or to hide wealth. Many countries blame foreign buyers for soaring property prices. Maria Petrakis reports from Melbourne in the new issue of F&D. https://lnkd.in/e_3PBFEr

China is confronting the difficult challenge of countering the profound growth and financial effects of a sustained real estate slowdown, Kenneth Rogoff writes in F&D magazine. Even without a Western-style financial crisis, China faces a difficult transition out of real estate, Kenneth Rogoff and Yuanchen Yang write in F&D magazine. https://lnkd.in/eiWvayF9

Since the global financial crisis, home prices across OECD countries have risen 37% in real terms, straining affordability. The impact is felt most by younger generations, with 60% of respondents below 40 worried about housing costs. This housing affordability crisis is more than just an economic challenge; it’s reshaping generational dynamics and creating a pressing need for policy solutions. https://lnkd.in/dSUhukru