ΙΜF Weekend Read

 

Dear MARIA,   In today's edition, we highlight: Emerging Market Momentum Boosting Brazil’s Growth The AI Economist  Ask an Economist: What is an IMF Program?  North Africa: Connecting Continents, Creating Opportunities EMERGING MARKETS Emerging Markets Must Build on Their Recent Success Emerging markets are key engines of global growth, and they have made great strides in improving their economic-policy frameworks and enhancing credibility. But as IMF Managing Director Kristalina Georgieva notes in a joint op-ed with Saudi Finance Minister Mohammad Al-Jadaan, “this is no time for complacency.”   The good news is that emerging markets have held up well after recent global shocks. “While supportive external conditions have played a part in their impressive resilience, so have the policies and institutions underpinning it,” according to Georgieva and Al-Jadaan.   At the same time, GDP in emerging markets and developing economies is on a slower growth path than before the pandemic. This makes it even more difficult to close the income gap with advanced economies.   Speaking at the the AlUla Conference for Emerging Market Economies on February 8-9, Georgieva highlighted two priorities: fostering private sector-led growth—by cutting red tape, deepening financial markets, and improving governance—as well as stepping up trade integration. “In a world of shifting alliances and trade patterns, there are new opportunities for cooperation at the regional and cross-regional levels,” she said. Learn More COUNTRY FOCUS Brazil Can Boost Growth by Bringing More Women into the Labor Force Brazil has seen a remarkable recovery in its labor market, with unemployment falling to historic lows. Yet beneath the headline numbers lies a persistent gap: while men’s participation in the labor market has returned to its pre-pandemic trend, women's has fallen significantly.   Addressing this challenge is critical for the economy as a whole. New IMF analysis suggests that halving the gender gap in labor force participation by 2033 could lift Brazil’s GDP growth by 0.5 percentage point per year. So, what can policymakers do?   Our latest review of Brazil’s economy highlights several priorities: expanding access to affordable, higher-quality childcare and eldercare is critical. Encouraging more paid work could involve adjusting the design of Bolsa Família, a conditional cash transfer program. And there is room to address pay disparities, including through effective implementation of the 2023 landmark Pay Equity Law. Read the Article F&D MAGAZINE The AI Economist (Credit: Porter Gifford) AI is too important to leave to computer scientists. So says MIT behavioral economist Sendhil Mullainathan, who has been applying artificial intelligence to economic research for more than a decade.   Algorithms, he says, have the potential to dramatically improve human decision-making on things that matter, from conducting a job search to setting bail in court to understanding the signals in a cardiac test.   “Economics is uniquely suited to this moment,” he told F&D’s Bob Simison in an interview. “It’s just not possible to build an algorithm without confronting the need to take the mushy, qualitative weirdness of life and put it up against the rigid formalism that is needed.” Read the Article VIDEO Ask an Economist: What is an IMF Program?  IMF support can be a lifeline for economies in times of crisis. But what does that lifeline actually look like? Watch our latest Ask an Economist to find out. Watch the Video MIDDLE EAST & NORTH AFRICA North Africa: Connecting Continents, Creating Opportunities North Africa has a unique opportunity to become a strategic connector of continents. Together, North Africa, Europe, and sub-Saharan Africa account for about 27 percent of the world economy, and there is ample scope for further integration, according to new IMF research.   We estimate that North Africa’s trade could increase by up to 50 percent, GDP by about 2 percent, and foreign direct investment by roughly 40 percent. To help unlock this potential, we will need coordinated economic reforms, upgraded infrastructure, and strong collaboration across the regions.   For example, European firms looking to diversify supply chains could invest in North African manufacturing hubs that source raw materials or intermediate goods from sub-Saharan Africa. Or think of North Africa’s energy potential, including hydrocarbons, solar, wind, and green hydrogen. If realized, this could allow the region to support Europe’s clean energy transition and help address electricity needs in sub-Saharan Africa. Read the Paper SURVEY Asia-Pacific Perspectives: Survey on the IMF’s Work Do you live in the Asia Pacific region? If so, do you have a few minutes to share your views on the IMF’s work and communications in your country or in the region? Take our short survey by clicking the link below. Your feedback will help us improve our engagement ahead of the 2026 Annual Meetings in Thailand. After completing the survey, you will have the option to sign up for a free subscription to the IMF’s Finance & Development (F&D) magazine. Take the Survey 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