2017-10-12
Vasiliauskas: Growing international trade is encouraging, yet exporters should remain vigilant
Attending the Annual Meetings of the International Monetary Fund (IMF) held in Washington, D.C., Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania, together with the IMF, governors of other central banks and Ministers of Finance, will discuss the latest IMF World Economic Outlook. Vasiliauskas will analyse global financial stability trends, including correspondent banking, with Tobias Adrian, Director of the Monetary and Capital Markets Department of the IMF.
‘Acceleration in economic expansion and a pick-up in international trade observed this year are reassuring. Nevertheless, we should remain cautious as what we currently see are simply early indications of a stronger recovery in trade’, said Vitas Vasiliauskas. He noted that the IMF forecast shows that international trade growth rates, compared to this year, are projected to be once again slightly moderate in the upcoming year. Assessing the medium-term risks, our exporters should devote their attention to boosting productivity and export market diversification.
The IMF World Economic Outlook, published on the eve of the Annual Meetings, shows that this year global growth will reach 3.6 per cent of GDP (a 0.1 p.p. upgrade compared to the April forecast), euro area economic growth – 2.1 per cent (revised up by 0.4 p.p.), while Lithuania’s – 3.5 per cent of GDP (raised by 0.7 p.p.).
With regard to the main foreign trade partners of Lithuania, the latest IMF forecast shows that stronger economic growth this year will be seen in Germany (2% of GDP; a 0.4 p.p. upgrade compared to the April forecast), Poland (3.8% of GDP; remained unchanged), Latvia (3.8% of GDP, raised by 0.8 p.p.) and Estonia (4% of GDP, upgraded by 1.5 p.p.).
During his meeting with the Director of the Monetary and Capital Markets Department of the IMF, the Governor of the central bank of Lithuania expressed his support for active IMF measures that would ensure access to correspondent banking relationships for banks operating in small countries. On a global scale, trends of declining correspondent banking relationships are still visible – this could impede international trade, impair the integrity of the financial system, and curb remittances of natural persons.
The Governor of the central bank of the Republic of Lithuania is Member of the Board of Governors of the IMF. Twice a year he participates in meetings organised by the IMF, where governors of various central banks as well as Ministers of Finance discuss relevant economic issues and look for ways to accelerate economic growth. During his current visit to Washington, he will take part in the meetings of the IMF International Monetary and Financial Committee as well as the plenary session of the IMF and World Bank’s Board of Governors. He will also meet with the IMF mission chiefs for the euro area.