IMF says strong global outlook: but what's it mean to me?

According to a Washington Post item entitled, World Economy Is Starting to Bloom, IMF Says, Projecting Strong Growth, we could be in for the best couple years in a decade -- globally. Sounds great before you start looking at the averaging out, which means your part of the world could be quite different. And, the IMF doesn't exactly get down to the level of "what's happening in my sector." Most important though, as usual, is the fine print where the disclaimers hide. Like here:

The fund tempered its optimism with warnings about risks that could destabilize financial markets and undermine the expansion.

"Global interest rates are very low, and will eventually have to rise substantially," the IMF said, asserting that low interest rates may have caused prices of real estate and other assets to rise excessively. "Future interest rate rises -- especially if abrupt or unexpected -- could lead to financial market volatility and possibly adversely affect the recovery."

Sort of like it's going to be hot and sunny, unless of course there's a destabilizing event which could cause severe thundershowers.

Put on your shorts and sunscreen -- but grab an umbrella.

Posted by Grayson at April 22, 2004 08:34 AM