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4/10/2018

IMF’s World Economic Outlook Report

"Demographic structure of developed countries has been the most important element affecting the participation to work power. Immigration policies have to be regulated so as to support labor supply. Labor force income disparity originates from income imbalance among all sectors. Policies inclusive of all sectors have to be pursued. Globalization maintains the dispersing of technology and growth among countries."

International Monetary Fund (IMF) has released analytical three sections of World Economic Outlook Report before IMF-World Bank Spring Meetings. Subject sections are as Participation in Labor Force in Developed Countries, Impact of Manufacturing Industry on Productivity and Disparity and How the Productivity, Information and Technology Shares in Global World.

On the basis of analytical study on these parts, IMF's findings are as follows:

- In the course of global crisis experienced in 2007-2008 period played important role in reduction of percentage of male labor. Technological developments have also played role in recent labor force participation ratio negatively. Still, demographic structure of developed countries has been the most important element affecting labor force participation. Immigration policies have to be regulated as to support labor supply.

- Contrary to general perception, decreasing the share of manufacturing industry in employment in developed and developing countries and moved towards services sector from manufacturing sector, do not necessarily bring about decrease in productivity or income disparity. Labor force income disparity originates from income disharmony among all sectors. Pursuing inclusive policies for all sectors instead of focusing on one sector only will secure to attain better results.

- Dissemination of technology among countries shows how the global growth produced and shared among the countries. Globalization is seen to intensify the dissemination of information and technology beyond borders and helps potential growth to be distributed among countries and global growth to be enhanced. Maintaining dissemination is important because it was seen in the past that only few developed countries to have advanced technology was a negative trend for the world.