IMF calls for fiscal policies that tackle rising inequality

Judith Bessette
Outubro 12, 2017

The International Monetary Fund (IMF) has affirmed its April forecast for Kosovo's 2017 economic growth at 3.5%, according to the latest edition of the Fund's World Economic Outlook (WEO) report.

Kosovo's economy expanded by 3.4% in 2016, according to the IMF estimate in the report.

In its annual report, the IMF said, however, that the dynamism of the Greek economy will gradually weaken with the economy expected to grow by only 1.0 pct in 2022.

The IMF's message would appear to put it at odds with the Trump administration, whose new tax proposals rely heavily on cuts for companies and the wealthy. The European Commission forecasts that Greece will grow by an annual rate of 1.5 pct in the period 2021-2014.

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The Fund noted that top personal income tax rates in Organisation for Economic Co-operation and Development rich nations had fallen to 35 percent in 2015 from an average of 62 percent in 1981.

The IMF pointed to extremely progressive tax systems, like the rates of "nearly 100 percent in Sweden or the United Kingdom in the 1970s", as a possible ally to curtailing further inequality, as it ranked the UK's current tax system as fairly middle of the road when it came to the tax systems of other advanced economies.

James Daniel, assistant director of the Asia and Pacific Department of the IMF and its mission chief for China, told Xinhua in a recent interview that the strong growth momentum this year has paved way for policymakers to accelerate needed reforms and achieve safer and more sustainable growth over the medium and long term.

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