On the horizon

The IMF has released chapters 2, 3, and 4 of its World Economic Outlook October 2017which delved into the subdued wage growth in advanced economies, the unequal impact of climate change on developing economies, and the impact of fiscal stimulus on cross border trade. Chapter 1 — the main event and which will delve into global economic growth and of specific countries (including Egypt) — is not out yet. We anticipate it will be out not long before the IMF and World Bank fall meetings on 9-10 October in DC. Its conclusions: Wage growth in advanced economies is slowing down thanks to automation, market forces and weakened productivity output; developing economies will be more hurt by climate change than advanced ones — and not much can be done about it on a national level; and the same economic forces that tend to amplify the domestic effects of fiscal policy also shape spillovers in cross border trade partners.