IMF Weekend Read

 

Dear MARIA,   In today's edition, we highlight: Launch of the IMF Shanghai Center IMF Upgrades China's Growth Projections  Alternative Data and Monetary Policy Podcast: Bank of Korea’s Innovative Approach Strong Tax Systems, Strong Economies ASIA Launch of the IMF Shanghai Center “The new center will strengthen our engagement with the Asia and Pacific region and promote the cross-fertilization of ideas, “ said IMF Managing Director Kristalina Georgieva. Speaking at the launch of the new China‒IMF Capacity Development Center in Shanghai, she stressed the importance of being “plugged into the economic and policy debates on the ground.”   Asia is experiencing a “triple transformation” of shifting demographics, a new trade landscape, and the advent of artificial intelligence. This means seeking new pathways for growth, including through a private sector-led push for higher productivity. It also means stepping up reforms to deepen regional trade integration: reducing non-tariff barriers in Asia could lift the region’s GDP by 1.8 percent in the long run.   The new center will focus its research agenda on emerging-market and middle-income countries. “It will enhance broader appreciation of Asian perspectives, including inside the IMF, and serve as a bridge between our economists at headquarters and economic scholars in Asia,” Georgieva noted. “Most importantly, it will serve as a hub to promote policy-relevant research.” Read the MD's Speech CHINA IMF Upgrades China's Growth Projections  The Chinese economy has been resilient, but faces important challenges. The IMF upgraded growth projections to 5% in 2025. IMF Managing Director Kristalina Georgieva emphasized the importance of comprehensive reforms, implemented with urgency, to rebalance China’s toward domestic consumption and away from exports. "Pivoting to consumption-led growth is the overarching policy priority for China," said Georgieva at a press conference presenting the key findings from the 2025 Article IV consultation, the IMF’s annual economic health check.   Read the Press Release F&D MAGAZINE Alternative Data and Monetary Policy (Credit:Greg Mably) In the spring of 2020, the Federal Reserve faced a challenge: the COVID-19 pandemic was upending daily life with shutdowns, social distancing, and heightened uncertainty. And the traditional economic statistics struggled to keep up with the pace of change and did not cover some of the novel features of the pandemic economy.   "Yet the Fed was not flying blind. It was able to pivot to nontraditional data sources, such as payroll processing and credit and debit card transactions. This was essential to track the rapid deterioration in the economy," writes Claudia Sahm in Finance & Development magazine. Sahm is chief economist at New Century Advisors and a former principal economist at the Fed.   "Improving the quality of data will require strong ties between government statistical agencies, private sector data providers, government officials, and academics,” she writes. “Nontraditional data presents opportunities and challenges, but understanding macroeconomic dynamics is the goal of both nontraditional and official government statistics." Read the Article PODCAST Governor Chang Yong Rhee on Bank of Korea’s Innovative Approach Price stability is the main goal for central banks, and monetary policy is how they achieve it. However, societies are always in flux, and central bankers who pay close attention to emerging trends are more likely to make better policy decisions. Bank of Korea Governor Chang Yong Rhee has looked at structural issues like population aging to better understand the changing dynamics of Korea’s economy. Before becoming Governor in 2022, Mr. Rhee held several senior roles in global financial institutions, including the IMF.   Watch the webcast of the 2025 Michel Camdessus Central Banking Lecture Listen to the Podcast AFRICA Strong Tax Systems, Strong Economies Check out the latest TADAT Talk on why revenue matters in Africa, featuring Abebe Selassie, Director of the IMF’s African Department. In this episode, Selassie unpacks the region’s macroeconomic challenges, the pivotal role of domestic revenue mobilization, and how the Tax Administration Diagnostic Assessment Tool (TADAT) can strengthen institutions across sub-Saharan Africa.    He also explains why resilient tax systems are essential for stability and why revenue mobilization sits at the heart of Africa’s development agenda. "I have seen so much positive change in Africa, the transformation is just incredible,” said Selassie.   TADAT Talks is a series that delves into the intricate world of tax administration. TADAT is a globally recognized, standardized framework used to objectively assess the health of a country’s system of tax administration. Watch the Talk Thank you very much for your interest in the Weekend Read! Be sure to let us know what issues and trends we should have on our radar.  Noha Elbadawy  Editor | IMF Weekend Read   nelbadawy@IMF.org Stay connected with the International Monetary Fund:       This email was sent to politikimx@gmail.com on behalf of: International Monetary Fund 1900 Pennsylvania Ave NW · Washington, DC · 20431

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