Prosperity growth will not like before – Aftenposten

The IMF has discovered a virus that the world economy will struggle with for years to come: Lower productivity growth.

In Washington it is good to be at this time of year. When flowers the many cherry trees in the US capital.

But the biannual summit of the International Monetary Fund and the World Bank, the mood is still not very good anyway.

There are also Treasury Siv Jensen brand. She has her real debut on the international top level here.

One thing is that 2015 is a new year with what the IMF calls “moderate” growth in the world economy. Translated into ordinary language it means another year of fairly disappointing economic development.

It is still not the main issue for the many finance ministers and central bankers who now has arrived at the US capital.

IMF namely another message disturbs the many finance ministers more.

When a new era – with lower growth

We are at a small watershed. Lower economic growth could be the new economic normal for the entire world economy – for many years to come.

The message from the IMF is dramatic for countries with high debt. They must expect to struggle with a heavy debt burden for years to come.

But the IMF’s message also has significance for Norway and other countries who manages quite well. Growth in prosperity and productivity will be lower than we had become accustomed to before the financial crisis.

Boss of it all

The head of the IMF, Christine Lagarde, exude confidence five years after she took over the helm when Welshman, Domique Strauss-Kahn had to withdraw after sex scandal.

At his press conference in Washington yesterday she beat a blow for reforms to boost growth back in old track.

– We must avoid mediocrity becomes the new normal, she said.

But she did not sound entirely convinced. And doubts are greater now reading the analyzes IMF staff put forward for finance ministers.

Light rewritten is the message as follows:

A virus that none until recently though so much of , seems to frame the economy in most countries in the world.

On a separate news conference earlier in the week was the IMF’s chief economist Olivier Blanchard crystal clear.

– In the rich countries one can hardly expect that future economic growth is higher than we are now experiencing – and noticeably lower than before the financial crisis.

At least as important is that a similar trend is now spreading into countries in Asia.

For rich and poor

For countries with high debt – and debt burden has continued to grow in most countries – this could be a dramatic message. It does no longer have to rely on that debt becomes easier to bear with increasing prosperity.

For the Norwegian government, this is a strange question.

Jensen come still not unprepared discussions Washington.

Part of the IMF’s analysis resembles a great deal on the image that the Norwegian finance minister has presented at home the last half year. Economic reforms that can increase productivity, become more important than before.

But in Washington, it is evident that the IMF has a rather sober view of what can be achieved. We go to a service society where room to streamline production is less.

It is no wonder that the finance ministers are concerned.

It may even be harder to get reelected.

Published: 16.apr. 2015 9:24 p.m.