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

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:   
|
|
|

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 US have global implications and will undermine the efforts to end poverty in developing countries, the World Bank 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 Democrats and Republicans 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

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 ...

Recommended for you

Advertisements

Columnists Rss icon

T N Ninan

T N Ninan: Power shift
T N Ninan

China has demonstrated that it has the power to not be isolated, and it is likely to become more powerful over time

Akash Prakash

Akash Prakash: The dollar consensus
Akash Prakash

Most are convinced the dollar will keep strengthening - so it's useful to ask: could they be wrong?

Editorial Comment Rss icon

Debt conversion into equity

Speeding up court decisions must be a priority

Climate change costs

Unpredictable weather may impact 30 per cent of the harvest

TWEETS @ POLITICS
@SinghRPN
RT @INCIndia: किसानों की आवाज बुलंद करना राष्ट्र विरोधी नहीं: श्रीमती सोनिया गांधी #SoniaLetter #ModiLandLaw
@milinddeora
RT @INCIndia: On this auspicious day,I share the joy of your family,friends&millions of Indians:Smt Gandhi's letter to Sh. Vajpayee http://…
@digvijaya_28
Coal Block allocation Bill is Anti Constitution Anti Consumers Anti Labour Anti Tribal. May see. https://t.co/d7l2rfAlxA
@thekiranbedi
(It's the uncivil message not the messenger) @mmdvv: It would be better if you tag twitter handle of these uncultured/uncivilised people
@ajaymaken
+1 RT @suhelseth: so here's my two bit prediction. India will win this match. Simple. I am not saying this out of nationalism. Just a hunch.
@MPNaveenJindal
RT @VIVEKSINGHANIA2: Salute brave officers Lt Kiran Shekhawat nSub Lt Abhinav Nagori died in #Dornier aircrash in Goa @mpnaveenjindal RIP …
@Panda_Jay
My Twitter handle changed yesterday to @PandaJay 😊, please follow that..
@ShashiTharoor
Saw a fabulous exhibition of my aunt Anjolie Ela Menon's recent works at Vadehra Art Gallery, D40 Defence Colony, Delhi. Stunning. Opens2day
@Swamy39
@shamshir_gaya Darul Islam : Saudi Arabia ; Darul Harab: India; Darul Ahad: Australia
@narendramodi
Are you ready to #GiveItUp https://t.co/Z4ZaJoG7Pa
@abdullah_omar
RT @JKNC_: #NowFollowing National Conference Leaders on @Twitter- @NasirSogami, @Junaid_Mattu, @TanvirSadiq, @DrVeeri, @SajjadShaheen, @Ift…
@varungandhi80
RT @pankajjha_: #BJP MP @varungandhi80 writes a letter to @yad avakhilesh for fair probe in #UP police recruitment @abpnewstv http://t.co/M
@ArvindKejriwal
Delhi High Court directs Haryana to release Delhi's share of water. Congrats Delhiites. I hope water situation wud be better these summers
@PMOIndia
PM described Shri PR Kyndiah as a popular leader who worked tirelessly for Meghalaya & the Northeast.
@rajeev_mp
RT @DrJwalaG: Former #PM #AtalBihariVajpayee to be conferred #BharatRatna today ! Great leader n a poet ! Well deserved @PMOIndia http://t.
@quizderek
#Replug Here are the video links/transcripts to 10 speeches I made recently in Parliament >> http://t.co/Ya5BYN0Ibe | Feedback welcome
@
President confers Bharat Ratna on Vajpayee at latter's residence http://t.co/VPnnOgfGat http://t.co/HbRHftGZ6W
@SushmaSwaraj
E mail : hoc@eolsanaa.org Website : http://t.co/5OKSDF9yza Indian Embassy Tel. 00-967-1-433631/00-967-1-433632
@arunjaitley
Let us pay tribute to Shaheed-E-Azam Bhagat Singh, Rajguru & Sukhdev, who sacrificed their life on this day in 1931 for India's freedom.
@MVENKAIAHNAIDU
Some talked about reforms .. Atalji walked the talk in the reforms...
@nitin_gadkari
राष्ट्रपति द्वारा अटलजी को भारत रत्न प्रदान किये जाने के समारोह में शामिल होकर गौरवान्वित महसूस कर रहा हूं
@DVSBJP
ಭಾರತ ರತ್ನ ......"Bharatha Ratna" http://t.co/BkHaRnZqEs
@umasribharti
चन्‍द्रशेखर राव को बधाई. तेलंगाना राज्‍य का मेरा संकल्‍प एवं सपना पूरा, तेलंगाना की नदियों का ध्‍यान रखेंगें.
@AnanthKumar_BJP
At membership drive in Mangaluru and Press meet... https://t.co/Reg5EUsU1y http://t.co/i68QK16Zof
@smritiirani
@thakkar_sameet thanks
@drharshvardhan
Visited National Institute of Ocean Technology,Chennai and dedicated to nation our home-made remote-controlled vehicle for polar studies.
@Gen_VKSingh
Attended an army function today and interacted with serving and retired soldiers. A very well organized event. http://t.co/Th4RZXIhDl
@Rao_InderjitS
Congrats to Shri AB Vajpayee ji on being conferred the Bharat Ratna. A leader respected & liked by all Indians. #भारतरत्नअटलजी
@nsitharaman
Noteworthy, Bihar received the grant for a second AIIMS in the state.GoI is committed to fulfilling its obligations to all states.10/10
@RSSorg
Best wishes on this auspicious new beginning. Let this sacred occasion gives us all enough energy and strength to do good for others.

Back to Top