Business Standard

US fiscal impasse affects global economy: World Bank

The federal government will reach its debt ceiling of $16.7 trillion by Oct 17

Read more on:    Us | Democrats | Republicans | World Bank
Related News

The fiscal uncertainties in the have global implications and will undermine the efforts to end poverty in developing countries, the said.

"The US remains the biggest economic power in the world and whatever happens here is going to affect all the developing countries," Xinhua quoted Sri Mulyani Indrawati, World Bank Group's managing director and chief operating officer, as saying Thursday.

The US debt ceiling issue is clearly getting attention around the world, and it is in everyone's interest for the fiscal dispute between US and to be resolved in a timely manner, she told reporters during a press briefing.

As the US government shutdown is in its 11th day, Washington faces another fiscal deadline. The federal government will reach its debt ceiling of $16.7 trillion by Oct 17, and failure to raise it would lead to a catastrophic default, US Treasury Secretary Jacob Lew has said.

The lingering US fiscal wrangle will push borrowing costs higher in developing countries, shifting their resources to service the debt from projects targeted at reducing poverty and enhancing shared prosperity.

Global economy has some good news as the European economy is picking up steam, but on the other hand, "we are still very concerned" about the fragile recovery of the global economy against the backdrop of the US fiscal impasse, Indrawati said.

The World Bank Group is committed to the main goals of ending extreme poverty by 2030 and promoting shared prosperity.

The Washington-based agency stands ready to help developing countries strengthen their policy frameworks to achieve robust and inclusive growth, she added.

Read more on:   
|
|
|

Read More

Argentina extends fuel-price freeze for 45 days

Buenos Aires, Oct 11 (IANS/EFE) Argentina has extended a six-month-old freeze on fuel prices for 45 days via a resolution published Thursday in the ...


Columnists Rss icon

Devangshu Datta

Devangshu Datta: The Dilli ka laddoo situation
Devangshu Datta

The inverse relation between the rupee's strength and export growth points to currency risks for investors in both directions

A K Bhattacharya

A K Bhattacharya: It's official - Change is coming
A K Bhattacharya

Confident that the existing political dispensation is set to bow out of office, civil servants have already begun positioning themselves

Editorial Comment Rss icon

Back to the future

Narendra Modi's economic vision needs greater clarity

Software leaders shine

But boom-related pressures will emerge

TWEETS @ POLITICS
@SinghRPN
Nomination day tomorrow. 3 weeks to go ! All those in Kushinagar, join me in working towards a better future http://t.co/PPo0JBlQlK
@milinddeora
RT @mandarpawaryc: @MilindMatters Shri Sanchor Nagrik Parishad conducted meeting in support of Dynamic Sobo MP @milinddeora "JAI HO" ht…
@digvijaya_28
More than 50 % People of Gujarat don't support Modi, should all of them go to Pakistan? KYA "ACHHE DIN AANE WALE HEIN" KA YAHI MATLAB HAI ?
@thekiranbedi
(India First!Its 2014 or late)@EconomicTimes: #NarendraModi in UP: Be it BJP,NDA or any other, no one will be spared....must be punished..."
@ajaymaken
Latest interview of RG 'Modi has a strong predilection for crony capitalism: Rahul Gandhi - The Times of India' http://t.co/BLh0O8Pwe1
@MPNaveenJindal
RT @VinkalChabra: @MPNaveenJindal Very nice news sir hope woman reservation bill to be passed soon in parliament too . women empowerment is…
@Panda_Jay
Lol 😄 RT @FacesPics: Oh no! She's coming back! http://t.co/4U00ORCZ0X
@ShashiTharoor
On humour, or lack thereof, in our contemporary politics: http://t.co/QTCmyjKJ0y
@Swamy39
@AshBhadani : True
@narendramodi
Enough of misgovernance & votebank politics. People of India want development & unity, which only NDA can provide https://t.co/QcHMiETWrr
@SushmaSwarajbjp
Yes. I am going to contest my 11th direct election. I have fought 10 elections already from four states. @VijayDeenanath
@abdullah_omar
RT @Chopsyturvey: Mirage 2000 of the Tiger Squadron. What a paint scheme. Wow http://t.co/wk8OrNirun
@varungandhi80
My article on reforming the Indian Parliament in TOI today. http://t.co/kOAupI3LlQ
@ArvindKejriwal
RT @VishalDadlani: Why so much advertising? http://t.co/F90pWCwyow
@PMOIndia
PM greets the Nation on Easter: "Truth and love triumphs over evil and hatred." Details at http://t.co/gWoZHNJJa0
@rajeev_mp
This RBI & Plg Comm graph explains hw inflation & food prices hv consistently gone up during 10 years of UPA govt http://t.co/rGLOBdNtP7

Back to Top