IMF: High Jobless rate till 2011

Source: PressTV
http://www.presstv.ir/detail.aspx?id=123400§ionid=3510213


The International Monetary Fund (IMF) says it expects unemployment in developed countries to remain high this year and next, at an average rate of 9 percent.

In a report released Wednesday, the agency said the United States and other industrialized countries still need to implement government stimulus and other policies to make up for slow private job creation.

"The nature of the recent recession in several advanced economies . . . the high degree of financial stress and the high degree of uncertainty all weigh against a speedy recovery in job creation," the IMF said in the report, issued in advance of its World Economic Outlook, due for release next week.

The report also suggests that central banks in developed countries should keep interest rates low.

The IMF predicted that the unemployment rate throughout the developed world will remain around 9 percent through 2011, "given the continuous expansion of the labor force."

Although the US economy created 162,000 jobs in March, the largest increase in three years, the unemployment rate remains stubbornly at 9.7 percent.

Since the recession began in December 2007, around eight million Americans have lost their jobs. A total of 15 million Americans remain unemployed.

"Persistently high unemployment may be the key policy challenge facing these economies as recovery gains traction," the Washington-based body said in the report.

"The prospect of persistently high unemployment increases the need for policies to jump-start job creation," the report said.

China threatens US over currency rate dispute

Source: PressTV
http://www.presstv.ir/detail.aspx?id=121383§ionid=351020404


Beijing has threatened to retaliate if the United States declares China a currency manipulator and imposes trade sanctions.

The US Treasury is to rule whether China is unfairly holding down its exchange rate to gain a competitive edge in global markets.

Political pressure is growing in Washington to declare China a currency manipulator. Some US senators have threatened to slap duties on Chinese products if Beijing fails to allow the yuan's value to rise.

Washington says China holds the yuan low so that Chinese goods can enjoy an artificial competitive edge.

Three years ago, Beijing had let the yuan climb 21 percent against the US dollar.

The International Monetary Fund and the World Bank have both urged China to let the yuan resume its ascent.

The currency debate has caused tension between the US and China. Relations between Beijing and Washington have been deteriorating over a number of issues, including the Pentagon's arms sales to Taiwan.