The International Monetary Fund cut its economic growth forecast for Russia, cautioning against the danger of stoking inflation with fiscal stimulus and urging policy makers to improve the business climate.
Brazil’s real posted the biggest decline in emerging markets after the government’s interventions this week failed to staunch capital outflows triggered by faltering economic growth and a jump in U.S. bond yields.
Ever since Standard & Poor’s stripped the U.S. of its AAA credit rating almost two years ago, the unemployment rate has fallen, household wealth has reached a record and the budget deficit is shrinking. More downgrades may be coming, anyway.
Japan’s effort to fight deflation and spur growth will be a topic at next week’s Group of Eight summit as leaders debate divergent policies in the world’s biggest economies, a German government official said.
China’s government risks being forced to bail out some local authorities and take over their liabilities after a report from the nation’s audit office showed a jump in borrowings, Moody’s Investors Service said.