Hello koala king and folks.
Good day to you.
IMF in its latest report on world economic growth expects an increase of 3.3 percent to 3.5 percent. However the financial crisis in the euro area remains a threat to world economic growth. According to the International Monetary Fund, the 17 nation euro zone economic growth this year will be -0.03 percent. The IMF’s outlook for economic growth in this area next year is 0.9 percent.
According to the International Monetary Fund, reduced demand and lower production in factories in industrial countries are some of the dangers which threaten global economic growth. High unemployment is another concern of the International Monetary Fund. Although the unemployment rate in America is decreasing, the number of unemployed in the euro zone is the highest in fifteen years and the average unemployment rate reached 10.8% in the seventeen-nation euro area.
The Italian government on Wednesday announced for its 2013 budget deficit to be 0.5 percent of GDP. Italy will not succeed in achieving a budget balance and its debt this year and next year will increase. Spain continues to issue bonds at relatively high interest rates due to reduced investor confidence.
Spring meeting of IMF and World Bank with attendance of the heads of central banks and finance ministers of member countries was held on Thursday. Christine Lagard, president of the International Monetary Fund said on the sidelines of the meeting that with the coming of spring, a trend of weak economic recovery is seen. Studies show that this recovery is very fragile and risky.
Finance ministers and central bank officials in twenty major industrialized nations, known as the Group of Twenty G20, met Friday in Washington and called on European countries to soon as possible, take action to resolve the debt crisis in the region and warned that the danger of another crisis threatening the global economy remains.
From a technical perspective: If the EUR/USD is able to break the 1.3210 resistance and close above it, the first target will be 1.33. The main trend is currently bullish but as you can see in the above picture, it may retraces from 1.3210.
Have a great weekend.
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