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Indecision on fiscal stimulus packages is resulting in uncertainties – experts

Indecision on fiscal stimulus packages is resulting in uncertainties – experts
By Kabanda Chulu
Mon 18 Jan. 2010, 04:00 CAT

GLOBAL economic experts have observed that the indecision by many countries on whether to continue with fiscal stimulus packages or not is resulting in uncertainties despite positive signs of world economic recovery.

And US authorities have directed banks and other institutions that acquired part of the government-financed US $700 billion stimulus to start paying back following reports that the institutions would avail bonuses and other related emoluments.

In an interview, Standard Chartered Bank head of research for Africa Razia Khan said it was undeniable that the global economy was recovering and several signs had emerged to reinforce the sentiment.

“Construction is booming, manufacturing is also increasing and many other sectors are showing signs of growth but there are real doubts if Asia will take over the West as global leader in economic growth,” Khan said. “On the other hand, uncertainties are emerging especially that no country has yet decided to on whether to remove or continue with the policy on stimulus packages and several deficits are being taken over by governments.”

And speaking ahead of the launch of the Logistics Performance Indicators (LPI), World Bank president Robert Zoellick stated that the capacity of countries to efficiently move goods and connect manufacturers and consumers with international markets was improving across the world.

“But much more progress is needed to spur faster economic growth and help firms benefit from trade recovery. Economic competitiveness is relentlessly driving countries to strengthen performance, and improving trade logistics is a smart way to deliver more efficiencies, lower costs and added economic growth,” Zoellick stated.

He stated that streamlining the connections among markets, manufacturers, farmers and consumers offered tremendous growth and investment opportunities and should be a top focus for developing country growth strategies.

Labels: GREAT DEPRESSION II, TAXATION

posted by MrK @ 6:42 AM