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

IANS  |  Washington 

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.

RECOMMENDED FOR YOU

US fiscal impasse affects global economy: World Bank

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

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

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.

image

Columnists

Widgets Magazine
Widgets Magazine
Widgets Magazine

Twitter Feed

  • @SinghRPN

    RT @OfficeOfRG: So I say to them keep attacking my family, it won't make a difference to me. I am here to defend the freedom of the people …

  • @milinddeora

    Not just India Inc, but all of India has the right to critique parliament. But please be consistent while doing so

  • @digvijaya_28

    http://t.co/0rG6oDNQfi Through my letter to Director CBI I have pointed out the gaps in STF investigation and tampering of the evidence.

  • @thekiranbedi

    New record set in my life.. By addressing such a large audience in Netaji Stadium..Hare Krishna. http://t.co/RMvyUQvaQU

  • @ajaymaken

    RT @Kundra_Vishal: अनशन पर बैठे @ajaymaken जी के साथ जिस तरह पटरी वालो का हुजूम जुटा लग रहा था हम फिरसे स्वतंत्रता की लड़ाई लड़ रहे हैं htt…

  • @MPNaveenJindal

    Thanks for Sharing. Today we @FFOIndia commissioned 64th Monumental #Tiranga at Jalandhar... https://t.co/nBHNinYYiL

  • @Panda_Jay

    My Twitter handle changed yesterday to @PandaJay 😊, please follow that..

  • @ShashiTharoor

    The @RobinHood_Army aims to unite students across India-Pak to serve 1 lakh people across the border #Mission100k http://t.co/DaZPpfCtl7

  • @Swamy39

    @shinustalin : Why? BJP has more potential than any other party. We can make course corrections

  • @narendramodi

    Am extremely happy to know that PAHAL scheme has set the Guinness world record for the Largest Cash Transfer Programme. @GWR

  • @abdullah_omar

    "Violence & talks can't go together" BJP circa 2004-2014. This is one U turn I'm very glad to see. Hope #NSAtalks lay strong foundation.

  • @varungandhi80

    Interesting, principled stand by @poonam_mahajan. https://t.co/ediMNjy5m9

  • @ArvindKejriwal

    RT @RamaNewDelhi: Last year, CM Kejriwal protested on the street! Today the entire Modi cabinet was on the street to protest! Govts protest…

  • @PMOIndia

    Welcoming the world to India. #IncredibleIndia http://t.co/Pc9Cbsh7lL

  • @rajeev_mp

    @thewire_in reports on @rsprasad 's response to my Parliament Question on #Privacy https://t.co/SHKr1DWJoJ

  • @quizderek

    @Sir_R_U_L @madversity Same apply for Salmaan Khan

  • @

    Tata Power beats estimates, reports Q1 profit of Rs 241 crore http://t.co/ew19wJeA2v

  • @SushmaSwaraj

    Thank you Prime Minister. https://t.co/PBfctpZag6

  • @arunjaitley

    THE MONSOON SESSION - IS IT INDIA’S LOSS? http://t.co/7Yc8g2iPTC

  • @MVENKAIAHNAIDU

    When you are not well on the facts, go to the well of the house(Parliament), said one great leader.

  • @nitin_gadkari

    Inaugurated the two day International Conference & Exhibition on Public Transport Innovation organised by ASRTU http://t.co/pifPFBCWHu

  • @DVSBJP

    RT @narendramodi: Sharp and pointed speech by Shri @arunjaitley in the Lok Sabha today. https://t.co/tDrqdfeCir

  • @umasribharti

    चन्‍द्रशेखर राव को बधाई. तेलंगाना राज्‍य का मेरा संकल्‍प एवं सपना पूरा, तेलंगाना की नदियों का ध्‍यान रखेंगें.

  • @AnanthKumar_BJP

    RT @narendramodi: Am extremely happy to know that PAHAL scheme has set the Guinness world record for the Largest Cash Transfer Programme. @…

  • @smritiirani

    RT @narendramodi: Sharp and pointed speech by Shri @arunjaitley in the Lok Sabha today. https://t.co/tDrqdfeCir

  • @drharshvardhan

    Praying to God for the peace of the Soul of a great President known as the Missile Man.The Nation&particularly students shall always miss u.

  • @Gen_VKSingh

    RT @narendramodi: A must-watch speech by @SushmaSwaraj ji in Parliament. https://t.co/Lpdg4wKcQf

  • @Rao_InderjitS

    RT @SpokespersonMoD: #IndependenceDay 2015: RRM @Rao_InderjitS giving away gifts to participating contingents at Rehearsal at #RedFort. htt…

  • @nsitharaman

    RT @narendramodi: Sharp and pointed speech by Shri @arunjaitley in the Lok Sabha today. https://t.co/tDrqdfeCir

  • @RSSorg

    Krishnappa Ji was a great organiser and inspiration to many Karyakartas & pioneered Kutumb Prabodhan activity in RSS: Dr Manmohan Vaidya