World Economic Forum 2018: Reports show both encouraging and discouraging figures
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World leaders are gathering in the Swiss town of Davos for the World Economic Forum. The main meetings officially start today. On the eve of the event, IMF director Christine Lagarde held a press conference with the organization's search officials. Omar Khan has more.
Very welcoming news from the IMF.
CHRISTINE LAGARDE IMF MANAGING DIRECTOR "Global growth has been accelerating since 2016 and all signs point to a continuous strengthening of that growth this year in 2018, and next year in 2019."
This came after the IMF revised upward its forecast for global growth to 3.9 percent for 2018 and 2019. The organization's latest outlook cites stronger than expected performance in parts of Europe and Asia. Both domestic and external demand were high, especially in Germany, Italy, and the Netherlands. And the IMF upped its growth forecast for Japan and expects it will benefit from higher external demand. Forecasts for China and other developing economies hovered at around the 6.5 percent mark. Though the projections are optimistic, risks remain.
CHRISTINE LAGARDE IMF MANAGING DIRECTOR "There are uncertainty in the year ahead. The long period of low interest rates has led to a build-up of potentially, potentially, serious financial sector vulnerability and we are seeing a troubling increase in debt across many countries and we need to remain watchful."
Another problem raised is inclusiveness--or lack of it.
CHRISTINE LAGARDE IMF MANAGING DIRECTOR "Growth in our view needs to be more inclusive; not only across countries, which has occurred over the course of the last few decades, but within countries."
The same day, WEF itself released The Inclusive Development Index 2018. Income inequality has risen or remained stagnant in 20 of the 29 advanced economies. Most emerging economies have improved in these respects. But in both advanced and emerging economies, wealth is significantly more unequally distributed than income. Another report published on Monday by charity group Oxfam gives more discouraging figures.
WINNIE BYANYIMA EXECUTIVE DIRECTOR, OXFAM INTERNATIONAL "We found that last year, 82 percent of the total wealth created was captured by the top 1 percent, and the bottom 50 percent of the world - 3.7 billion people - got nothing, zero percent of that new wealth."
All these are just part of various issues on the table for world leaders. Participants and observers are hoping discussions in Davos can provide some inspirations for answers. CGTN.