Money Daily Brief: World economy to grow faster in 2010, IMF says
The International Monetary Fund raises its 2010 forecast for economic growth.
•Faster global recovery: The International Monetary Fund will boost its 2010 world economic growth forecast to 3.1 percent from 2.5 percent, its managing deputy director said. A survey of economists projected Brazil's GDP will rise 4.5 percent in 2010, up from 4.2 percent predicted a week earlier. But an IMF report warned of a significant lurch in the global recession due to tight credit and tougher lending rules of banks. It estimated that the global financial crisis would cause $3.4 trillion in bank losses for the 2007-10 period.
•Eurozone prices: Consumer prices in the 16-nation region fell a larger than expected 0.3 percent from a year earlier, the fourth straight monthly decrease, as oil prices dropped and rising unemployment caused shoppers to cut back. Private economists said the deflationary trend was temporary.
•Smarter airlines: Carriers worldwide are introducing advanced scanners and luggage tags with radio signals to prevent baggage loss at airports. Last year, nearly 33 million bags, or 1.4% of all checked in luggage, was mishandled, costing airlines $3 billion.
•In my backyard: Pilots at ailing Air India called off their five-day strike after the government reversed its decision to slash pay incentives and flying allowances by up to 50 percent. The strike had forced the cash-strapped airline, which is seeking a 75 billion rupee ($1.6 billion) government bailout, to cancel hundreds of flights and initially suspend ticket bookings till Oct. 15, raising fears that fares at other airlines could soar. But with the strike ending, Air India, which controls 17 percent of the market share, says it is trying to normalize operations.
– Anuj Chopra is a Monitor correspondent in Pune, India. For a look at the movement to uphold corporate ethical standards, click on Corporate oaths? Now even business students are expected to be ethical.