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<ul><li>According to the International Labour Organisation’s India Wage Report, the average annual wage growth from 1993-94 to 2011-12 was 3.7%, while <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> grew at a yearly rate of 7%. </li><li>By 2011-12, the overall daily wage in India was around ₹247, while casual workers, estimated to total 62% of the total workforce, only earned ₹143 a day. </li><li>It does bear mentioning, however, that the gender wage gap has decreased from 48% in 1993-94 to 34% in 2011-12. </li></ul>When India opened up its economy in 1991, the goal of the policy was clear: to accelerate <keyword id="47276" type="PERSON" weightage="20" keywordseo="Economic-growth">economic growth</keyword>. Two decades, later, it seems that India’s financial liberalisation - which comprised a surge in foreign investment, a reduction in tariffs and deregulation- has had its intended effect on India’s GDP and then some. However, a recent <a href="https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---sro-new_delhi/documents/publication/wcms_638305.pdf">report</a> by the International Labour Organisation shows that this growth hasn’t been inclusive, indicated by the fact that wage growth in India has significantly trailed economic growth from 1993-94 to 2011-12. Over the period in question, the average annual growth in <keyword id="6356975" type="UNKNOWN" weightage="20" keywordseo="wages">wages</keyword> was a mere 3.7% compared to the 7% average yearly growth in India’s GDP. On a cumulative basis, India’s GDP grew by four times in the last two decades, while real wages only doubled. Interestingly, most of the increase in wages came in the last 8 years. This sluggish wage growth has contributed to a rise in inequality and exacerbated the economic divide between rural and urban areas. The daily wage in urban centres in India is still double that of rural areas, indicating a lack of good-quality jobs in rural regions of the country. By 2011-12, the overall daily wage in India was around ₹247, while casual workers, estimated to total 62% of the total workforce, only earned ₹143 a day. Additionally, nearly half of India’s workforce is estimated to be employed in the agricultural sector, a sector that has consistently trailed others in terms of output growth and productivity. The report did show a few positive changes. Rural wages increased at a faster pace than urban wages. Additionally, wages for female workers also increased at a faster pace than wages for male workers. However, this is largely due to the fact that both rural wages and female wages had a low base from which to grow from. It does bear mentioning, however, that the gender wage gap has decreased from 48% in 1993-94 to 34% in 2011-12. The <keyword id="6456249" type="UNKNOWN" weightage="20" keywordseo="ilo">ILO</keyword> suggested a number of ways to reduce the level of wage inequality such as the continued revision of minimum wage laws, the improved collection of worker data by government agencies, the formalisation of the informal sector and the implementation of skilling programmes to improve labour flexibility and productivity.

India's wage growth significantly trails economic growth, says the ILO

<ul><li>Former <keyword id="1841448" type="ORGANIZATION" weightage="60" keywordseo="Fed-chair">Fed Chair</keyword> <keyword id="108557" type="PERSON" weightage="60" keywordseo="Alan-Greenspan">Alan Greenspan</keyword> told Bloomberg that the US is entering a period of slowing <keyword id="47276" type="PERSON" weightage="60" keywordseo="Economic-growth">economic growth</keyword> due to a decrease in <keyword id="23080" type="COMPANY" weightage="60" keywordseo="productivity">productivity</keyword>. </li><li>The aging of the population and an increase in social security benefits is contributing to this productivity slowdown, he said. </li><li>"I'm very much concerned about this and I don't know how we're going to get out of it very quickly," Greenspan said. </li></ul><ul><li><a href="https://www.businessinsider.com/?hprecirc-bullet?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest">Visit Business Insider's homepage for more stories</a>.</li></ul>Alan Greenspan told Bloomberg on Wednesday that <keyword id="2067135" type="PERSON" weightage="60" keywordseo="productivity-growth">productivity growth</keyword> has slowed "dramatically" in the US and the <keyword id="34412" type="ORGANIZATION" weightage="100" keywordseo="economy">economy</keyword> will soon take a hit from this. "Productivity in the most recent data is at 1% a year. That is down very significantly from earlier periods and it's beginning to show up in ways which suggest the intermediate period ahead of us is going to be a period of slow economic growth," the former chairman of the <keyword id="6355253" type="UNKNOWN" weightage="60" keywordseo="federal-reserve">Federal Reserve</keyword> said.Greenspan said that the aging of the population is causing an increase in social security benefits, which is slowing the rate of saving, driving capital investment down, and slowing productivity.Read more: <a href="https://www.businessinsider.com/investing-trading-strategy-jim-rogers-8-rules-for-big-returns-2020-10">Market wizard Jim Rogers started trading with $600 and now has a reported net worth of $300 million. He shares the 8 trading rules that ensured his success.</a>"If you curtail gross domestic savings, you will also curtail gross domestic investments, which is the key to economic growth, because fundamentally it generates all of the economic activity that we get in the capital good <keyword id="31671" type="CITY" weightage="60" keywordseo="markets">markets</keyword>," Greenspan said. "So I'm very much concerned about this and I don't know how we're going to get out of it very quickly."Greenspan called the aging of the population a "fundamental issue" in the economy. He said this is a problem that is not going to "ultimately disappear" as the coronavirus will.

Former Fed Chair Alan Greenspan says the US is entering a period of slow economic growth on lowered productivity

<ul class="summary-list"><li><a href="https://markets.businessinsider.com/stocks/jpm-stock">JPMorgan</a> is the latest Wall Street bank to slash its forecast for US <keyword id="47276" type="PERSON" weightage="60" keywordseo="Economic-growth">economic growth</keyword> because of weakened hopes for near-term stimulus.</li><li>The bank on Thursday lowered its fourth-quarter 2020 estimate to 2.5% from 3.5% and cut its first-quarter 2021 growth forecast to 2% from 2.5%.</li><li>The lack of fresh fiscal aid has an "immediate impact" on household incomes and will drive a contraction in disposable income into 2021, Michael Feroli, the bank's chief economist, said in a note.</li><li>JPMorgan projected that the absence of a new stimulus measure would also lower the 2021 federal deficit to $2 trillion from $3.5 trillion.</li></ul>Dwindling odds of a new stimulus deal are driving economists to tamper expectations for US economic growth. <a href="https://markets.businessinsider.com/stocks/jpm-stock">JPMorgan</a> on Thursday became the latest Wall Street giant to follow suit.Michael Feroli, the bank's chief economist, lowered his gross-domestic-product estimates for the fourth quarter of 2020 and the first quarter of 2021. The US <keyword id="34412" type="ORGANIZATION" weightage="60" keywordseo="economy">economy</keyword> will expand by 2.5% in the final quarter of 2020, he wrote in a note, down from the firm's previous forecast of 3.5% growth. First-quarter growth will reach 2%, down from the prior 2.5% estimate.Household incomes will see the "most immediate impact" from the lack of additional fiscal aid, Feroli said. Another spending package would drive a 24% annualized increase in disposable income through a second round of relief checks and the resumption of expanded unemployment benefits, according to the bank. But the lack of a near-term bill would drive a 12% contraction in disposable income next quarter.Read more: <a href="https://www.businessinsider.com/stock-market-investing-tips-global-growth-fund-manager-sunil-thakor-2020-9" target="_blank" rel="noopener">Sunil Thakor's global stock fund has returned more than 500% to investors since 2009 by precisely targeting high-growth companies. He explains how he finds long-term winners in a 'sweet spot' that minimizes risk.</a>An encouraging trend in households' saving activity kept JPMorgan from lowering its <keyword id="1067837" type="PERSON" weightage="60" keywordseo="GDP-estimates">GDP estimates</keyword> further, the note said. The personal savings rate fell to 18% in July after peaking at 34% in April, and the firm expects a reading of 15% for August. Should job growth continue its upward trajectory this month, Americans may shift some of their saving to spending and lift growth in the fourth quarter, Feroli said.The absence of a new stimulus bill has its upsides, the economist added. JPMorgan lowered its 2021 fiscal-deficit estimate to $2 trillion from $3.5 trillion, citing the lack of a deal. The forecast stands to change before the year is out, as the presidential election could change the outlook for federal spending plans.A "blue wave" would likely prompt greater spending, and even a divided government would likely lean toward larger deficits over slashed spending, Feroli said.Read more: <a href="https://www.businessinsider.com/investment-advice-market-drivers-where-to-put-money-brent-schutte-2020-9">Northwestern Mutual's chief strategist told us the 6 market drivers he's watching most closely amid the volatility — and broke down where he's putting his money over the next 9-12 months</a>Congress has largely shelved plans for a new relief bill. Republicans have shifted their focus to filling the Supreme Court vacancy left by Justice Ruth Bader Ginsburg's death. Legislators on both sides of the aisle are also rushing to pass a spending measure to avoid a government shutdown.Still, some hope remains for stimulus progress ahead of the November election. Treasury Secretary Steven Mnuchin indicated on Thursday that new aid was "still needed" and told legislators he remained in talks with House Speaker Nancy Pelosi on passing a measure. Separately, House Democrats moved forward with a $2.4 trillion proposal that includes funds for American families, airlines, and restaurants.JPMorgan's updated forecast meets projections made by its Wall Street peers in recent weeks. Goldman Sachs economists on Wednesday cut their fourth-quarter estimate <a href="https://www.businessinsider.com/economic-outlook-q4-gdp-halved-stimulus-deadlock-congress-goldman-forecast-2020-9">to 3% from 6%</a>, similarly citing a lack of new stimulus before the end of the year.<a href="https://markets.businessinsider.com/stocks/bac-stock">Bank of America</a> lowered its estimate <a href="https://markets.businessinsider.com/news/stocks/economic-outlook-gdp-estimates-bank-america-stimulus-bill-recovery-quarter-2020-9-1029582684">to 3% from 5%</a> in early September after calling stalled relief negotiations a "speed bump" for the nation's economic recovery.Read more: <a href="https://www.businessinsider.com/multifamily-real-estate-investing-strategy-advantages-of-syndication-bruce-petersen-2020-9">Bruce Petersen spent 18 years in the retail industry before amassing a real estate portfolio with nearly 1000 units. Here's the investing strategy he's using that's 'head and shoulders better' than a traditional approach.</a>

JPMorgan slashes its forecast for US economic growth amid a lack of new stimulus

<div class="image-container float_right" style="width:480px"><div class="image"><a href="http://commons.wikimedia.org/wiki/File:Bolitas_%282186855706%29.jpg">Wikimedia Commons</a></div></div>Although the market celebrated today’s releases on weekly unemployment claims and the ISM Manufacturing Index, the trajectory of this weak economic recovery has probably not changed. Both of these indicators are affected by the difficulty the government has in gauging the seasonal adjustment factors in this part of the year as a result of the timing of the annual auto industry shutdowns for re-tooling. In our view the 1st and 2nd quarter GDP results offer a much more representative outlook for an <keyword id="34412" type="ORGANIZATION" weightage="60" keywordseo="economy">economy</keyword> that seems to be losing steam rather than picking up as most observers believe.
The unexpectedly large increase in the ISM Index was propelled mainly by a 6.4% rise in orders and an 11.6% jump in production. On a seasonally unadjusted basis the respective increases were -1% and +2%. While these were both better than usual for July, the seasonal adjustments, as compared to the past, seem unusually generous, and the reported number is most likely an outlier that also appears inconsistent with most other economic reports. Similarly, the weekly unemployment claims number is usually choppy in July, and we would take it with grain of salt unless it is confirmed in subsequent weeks.
The GDP results for the first half are a more accurate indicator of how weak the economic recovery has become. While 2nd quarter growth of 1.7% was a mild upward surprise over expectations, 1st quarter growth was marked down to 1.1% from a previously reported 1.8% and a preliminary report of 2.4%. Even so, there is reason to believe that the 2nd quarter was actually weaker than the 1st. An unexpectedly large rise in inventories accounted for 24% of 2nd quarter growth, while consumption was up only 1.2%, compared to a still anemic 1.5% in the prior quarter. Final demand was up only 1.3% in the 2nd quarter and 0.3% in the 1st. The need to work off the excess inventories will tend to impede second half growth. In addition government spending was down less than expected, indicating that further layoffs related to the sequester are still ahead. We note that GDP would have to rise 3.5% in the 2nd half in order to meet the Fed’s last forecast.
Another factor to consider is that nominal 2nd quarter GDP growth of 2.39% was actually lower than the 2.83% reported in the prior quarter. The adjusted result was based on applying a price deflator of only 0.71% in the 2nd quarter, down from 1.67% in the 1st. Had the same deflator been used in the 2nd quarter, real GDP growth would have been only 0.7%.
In assessing the prospect for growth, it is also important to mention the much-discussed concept of “stall speed”, the point at which the economy can no longer maintain momentum and, therefore, falls into recession. In post-World War II recoveries whenever the 4-quarter growth rate of GDP has declined to below 2% the economy has gone into recession within a short time. In this regard, it is noteworthy that 2nd quarter GDP growth was only up 1.4% from a year earlier. This does not bode well for the widely expected pickup in the 2nd half, particularly in view of the headwinds from the coming political fight over the budget and debt limit, the possible tapering of QE, and the numerous problems facing the global economy.
In our view the stock market is overvalued, overly bullish and in a state of denial about the shaky economic recovery. We believe that the potential for a severe downturn is too great to ignore.

Economic Growth Momentum Is Fading

<ul class="summary-list"><li><a href="https://markets.businessinsider.com/stocks/gs-stock">Goldman Sachs</a> halved its outlook for fourth-quarter <keyword id="47276" type="PERSON" weightage="60" keywordseo="Economic-growth">economic growth</keyword> after changing its base case to include a lack of new stimulus until 2021.</li><li>The bank's economists lowered their <keyword id="6354971" type="DEFINITION" weightage="60" keywordseo="gross-domestic-product">gross domestic product</keyword> forecast to 7% growth from 6% on a quarter-by-quarter basis in a Wednesday note.</li><li>The lack of new fiscal support will push disposable income to pre-pandemic levels and lower consumer spending through the end of the year, Goldman said.</li><li>Still, the bank modestly lifted its <keyword id="35050" type="CITY" weightage="60" keywordseo="gdp">GDP</keyword> estimates for the second, third, and fourth quarters of 2021, citing new stimulus being passed in the new year and the arrival of a coronavirus vaccine.</li></ul>Congress has mostly given up on passing another stimulus bill before the US presidential election, and <a href="https://markets.businessinsider.com/stocks/gs-stock">Goldman Sachs</a> sees the lack of fresh aid dragging on fourth-quarter growth.Economists led by Jan Hatzius lowered their fourth-quarter gross domestic product forecast to 3% from 6% on a quarter-over-quarter basis after incorporating the lack of a near-term relief package into their base case. The bank expects the withdrawal of stimulus programs to pull households' disposable income back to pre-pandemic levels and weigh on consumer spending through the end of 2020.Continued job growth will lift private income, but gains will be overshadowed by the drop in stimulus support, the team said in a note to clients. The updated forecast arrived before weekly jobless claims data published Thursday showed continued pain in the labor market. Filings for unemployment benefits climbed to 870,000 for the week ended Saturday, landing above the 840,000 filing estimate.Read more: <a href="https://www.businessinsider.com/stocks-to-buy-6-covid-19-second-wave-ryan-giannotto-2020-9">A Wall Street expert breaks down why these are the best 6 stocks to own for a second coronavirus wave in addition to the FAANMGs</a>The economists previously expected Congress to pass a $1 trillion stimulus package by the end of September that would include another expansion of unemployment benefits and additional funds for the Paycheck Protection Program.Those hopes have since been dashed as legislators shift their focus to the filling the Supreme Court vacancy and avoiding a government shutdown. Goldman now sees stimulus being passed in early 2021, if at all.Some of the economic growth set to be lost in the fourth quarter will bleed into the new year, according to the team. Goldman raised its GDP forecast for the second quarter of 2021 to 7% from 6% on a quarter-over-quarter basis. Estimates for the third and fourth quarters of 2021 were lifted to 4.5% and 3.5%, respectively."We are more confident that widespread distribution of a vaccine to the full population will be achieved by Q2 rather than Q1 of next year," the team wrote, citing a report from <a href="https://www.washingtonpost.com/health/2020/09/22/fda-covid-vaccine-approval-standard/">The Washington Post</a> revealing stricter regulatory standards for approving a vaccine.Other Wall Street giants recently incorporated a lack of new stimulus into their growth forecasts. Bank of America <a href="https://markets.businessinsider.com/news/stocks/economic-outlook-gdp-estimates-bank-america-stimulus-bill-recovery-quarter-2020-9-1029582684">lowered its fourth-quarter growth estimate to 3%</a> from 5% in early September, calling stalled negotiations a "speed bump" for the US economic recovery."As evident in prior rounds of stimulus, bipartisan cooperation is critical. And with the 2020 presidential election less than two months away, partisanship is only growing," the bank's economists wrote in a note.Read more: <a href="https://www.businessinsider.com/stocks-to-buy-on-the-dip-3-companies-marc-chaikin-2020-9">A Wall Street expert explains why the market's ongoing turbulence could end within 2 weeks — and pinpoints 3 stocks to grab cheaper now as big investors buy the dip</a>

US 4th-quarter economic growth will be cut in half if Congress fails to pass more stimulus, Goldman Sachs says

<ul class="summary-list"><li>The <keyword id="11896136" type="UNKNOWN" weightage="60" keywordseo="pandemic" source="Orion">pandemic</keyword> has widened <keyword id="11893571" type="UNKNOWN" weightage="60" keywordseo="inequality" source="Orion">inequality</keyword>, hitting vulnerable workers hard while making the rich richer.</li><li>Amid this, experts are wary of looking only at overall growth to assess <keyword id="11948642" type="UNKNOWN" weightage="60" keywordseo="economic-recovery" source="Orion">economic recovery</keyword>.</li></ul>Nearly two years into the coronavirus pandemic, the world eagerly awaits predictions of when - and how - the <keyword id="11893570" type="UNKNOWN" weightage="100" keywordseo="economy" source="Orion">economy</keyword> will recover from its largest shock since the Great Recession.By some indicators, that recovery is already well underway.<a href="https://www.brookings.edu/research/11-facts-on-the-economic-recovery-from-the-covid-19-pandemic/">US gross domestic product</a> (GDP) returned to its pre-pandemic levels in the second quarter of 2021, sooner than economists' expectations. <a href="https://thehill.com/policy/finance/573667-us-household-wealth-rises-to-record-federal-reserve-say">Household wealth reached a record high</a> in September.For some, such indicators are reassuring: A recent survey by accounting firm KPMG found that CEOs of the world's biggest companies are already back to their <a href="https://www.reuters.com/world/the-great-reboot/ceos-back-pre-pandemic-levels-confidence-kpmg-survey-shows-2021-08-31/">pre-pandemic levels of confidence</a> in the global economy.But many experts worry that people have focused too much on the overall economy - and not enough on how those hit hardest are doing. "There's too much reporting that everybody is doing just fine and everybody's flush with cash and everybody's doing well, and that's simply not true," Sylvia Allegretto, a labor economist and co-chair of the University of California Berkeley's Center on Wage and Employment Dynamics, told Insider."There are a lot of people that are slipping through the cracks, that are being kicked out of their homes and their apartments that never did have much spending. Those people are not doing well and their children are not doing well, and that isn't being reported on very much," she said.Women and people of color, hit hardest at the pandemic's start, have also largely been <a href="https://www.businessinsider.com/jobs-for-women-people-of-color-still-behind-economic-recovery-2021-7">left out of the recovery</a> thus far - with Black and Latino workers still experiencing higher-than-average unemployment rates. <a href="https://www.businessinsider.com/labor-market-low-wage-minority-workers-hardest-hit-fed-study-2021-2">Workers making less than $30,000 per year</a> were laid off by employers at higher rates.At the same time, <a href="https://www.businessinsider.com/number-of-billionaires-in-world-grew-pandemic-wealth-tax-2021-9">global billionaires' combined wealth</a> has grown by $10 billion during the pandemic, roughly 5.7%.Amid this disparity, multiple economists told Insider that metrics like GDP paint a misleading picture of economic health."If there's a huge burst in GDP and almost all of it goes to Jeff Bezos, we look like we made progress, but it's not a lot of progress for most people," said Manuel Pastor, an economist and sociologist who leads the University of Southern California's Equity Research Institute.Allegretto said GDP doesn't help explain events that generate economic activity but actually hurt society. "The problem with GDP is GDP goes up when you crash your car. If you get hurt and go to the hospital, it goes up even more," she said.As a result, economists are increasingly turning to metrics that capture not just overall <keyword id="11916717" type="UNKNOWN" weightage="60" keywordseo="economic-growth" source="Orion">economic growth</keyword>, but how economic gains are being distributed."We recognize the importance not only of growing the overall pie in GDP, but also how that pie is distributed," Indhira Santos, who leads the World Bank's labor and skills research within its Social Protection &amp; Jobs Global Practice, told Insider.A common way to measure this is the <a href="https://www.census.gov/topics/income-poverty/income-inequality/about/metrics/gini-index.html">Gini index</a>, a simple measure of income inequality in a country. A Pew Research report in noted that the US <a href="https://www.pewresearch.org/social-trends/2020/01/09/trends-in-income-and-wealth-inequality/">already had the highest Gini number</a> among the Western G-7 countries in 2017.But Pastor said there's a growing number of "equity metrics," including the <a href="https://sustainabledevelopment.un.org/index.php?page=view&amp;type=99&amp;nr=266&amp;menu=1449mp;menu=1449">gross happiness index</a> and the <a href="https://gnhusa.org/genuine-progress-indicator/">genuine progress indicator</a>, which attempt to capture a wider range of economic and social activities.The genuine progress indicator, Pastor said, accounts for unpaid labor like caring for family or community members, which during the pandemic has been "quite important but hasn't been evaluated."Santos said the World Bank, for its part, is looking at income growth for the top 60% of a country compared to the bottom 40%, in hopes of gaining a more nuanced understanding than what the Gini index offers.Ultimately, according to Allegretto, "the increased inequality that's been reported is only going to get worse, so we should be looking at the bottom."

The latest data on the economy say it's totally recovered, but it still feels like a struggle for the working poor, experts say

The International Monetary Fund has got some bad news for us - the slower rate of economic growth could be here to stay.In its latest World Economic Outlook, the IMF says a combination of slower catch-up growth by emerging economies and ageing societies in the developed world are set to hold back global growth despite signs of a recovery setting in.In the aftermath of the financial crisis, potential growth in advanced economies has slowed from an average of over 2% per year to around 1.6%. Here's what that looks like:<div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="IMF" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5523dc2add08953e248b456a-960/https___www-ombc_imf_org_protected_contents_pubs_ft_weo_2015_01_weo_ch3ss_pdf 3.png"></a><a href="http://www.imf.org/external/index.htm">IMF</a></div></div></div>As you can see from the chart, most of the fall in potential growth is coming from the squeezing of that middle brown section - employment growth. That represents the potential growth in the number of employees in an economy and it is falling as Western societies get older.This process, according to the IMF, is likely to hold back growth in future. As the Fund puts it:Working-age population growth is likely to decline significantly in most advanced economies, particularly Germany and Japan, where it will reach about -0.2 percent a year by 2020. At the same time, rapid aging is expected to further decrease average trend labor force participation rates, offsetting the positive effect of continued population increases on overall labor supply.Meanwhile emerging economies have also seen growth rates slipping since the crisis, albeit from higher starting points. This is largely due to slower catch-up growth as the technological improvements and increases in educational achievement over the past few decades that have helped to narrow the gap with their advanced peers are unlikely to be repeated.<div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="IMF" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5523dc2add08953e248b456b-960/https___www-ombc_imf_org_protected_contents_pubs_ft_weo_2015_01_weo_ch3ss_pdf 4.png"></a><a href="http://www.imf.org/external/index.htm">IMF</a></div></div></div>What does this all mean? Well, firstly it means that living standards are going to struggle to rise in future at the same pace as they have done. Workers experiencing sluggish wage growth since the crisis may find that it becomes the norm rather than the exception in future.Unfortunately, slower potential growth also has worrying implications for public finances. Governments can lower the burden of public debt in two ways, either by cutting spending to reduce borrowing or through the economy growing faster than debt costs.Slower growth means that cutting debt is likely to rely more heavily on spending cuts than simply allowing growth to erode the problem. Yet the very factor holding back growth - ageing societies - is also likely to make such cuts harder to achieve as older people use state services such as healthcare more intensively than their younger peers.As it says in the WEO (emphasis added):Reduced prospects for potential growth in the medium term have important implications for policy. In advanced economies, lower potential growth makes it more difficult to reduce still-high public and private debt...In emerging market economies, lower potential growth makes it more challenging to rebuild fiscal buffers.Despite the gloom, there are ways in which countries can act to ameliorate some of the consequences of this growth squeeze. In particular, the IMF suggests state support for innovation and further education should be policy goals as well as providing an environment that promotes increased labour force participation by those of working age, especially for women.More controversially, perhaps, the IMF also says providing support for demand through accommodative central bank policies and also, where possible, government spending may also be needed to boost investment.One subject that the Fund elects not to discuss in any detail is the potential growth benefits of higher immigration. For example, <a href="http://uk.businessinsider.com/sky-news-battefornumber10-immigration-debate-2015-3">Britain's Office for Budget Responsibility, the government's budget watchdog, recently noted</a> that higher than forecast immigration over the past few years had "raised potential output growth by 0.5 per cent over the forecast period via 16+ population growth".Indeed in the WEO it relegates the discussion of the potential impact of immigration on its forecasts to the footnotes:<div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="IMF" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5523dc2add08953e248b456c-960/https___www-ombc_imf_org_protected_contents_pubs_ft_weo_2015_01_weo_ch3_pdf.png"></a><a href="http://www.imf.org/external/index.htm">IMF</a></div></div></div> <div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="IMF" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5523dc2add08953e248b456d-960/https___www-ombc_imf_org_protected_contents_pubs_ft_weo_2015_01_weo_ch3_pdf 2.png"></a><a href="http://www.imf.org/external/index.htm">IMF</a></div></div></div> Given the subject matter (the slowing rate of employment growth) and the implications of the lower growth for government policy options, that seems a very odd omission. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/how-to-do-a-pull-up-fitness-2015-2">You've been doing pull-ups all wrong</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="h4MTA5czqVVK6yd1eXtADlv7g4Wi1Aum" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

You Searched For "economic growth" and got 7 results

India's wage growth significantly trails economic growth, says the ILO

Dilsher Dhillon

Former Fed Chair Alan Greenspan says the US is entering a period of slow economic growth on lowered productivity

Emily Graffeo

JPMorgan slashes its forecast for US economic growth amid a lack of new stimulus

Ben Winck

Economic Growth Momentum Is Fading

Comstock Partners

US 4th-quarter economic growth will be cut in half if Congress fails to pass more stimulus, Goldman Sachs says

Ben Winck

The latest data on the economy say it's totally recovered, but it still feels like a struggle for the working poor, experts say

Tyler Sonnemaker

Why economic growth is slowing down everywhere

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