Maria Montero

The IMF and the World Bank will stop using GDP …

In an annual ritual that many have grown to love, Danish investment bank Saxo published its year-end list of outrageous predictions for the following year.

The banks predictions for 2019 Covering a world that increasingly says “enough is enough,” explains Saxo as the overwhelming topic on his list.

These predictions are not official forecasts of any kind, but rather a series of “unlikely but under-appreciated” events that, if they occur, could throw financial markets into chaos.

Enough is enough

“This year’s edition has a unifying theme of ‘enough is enough,'” said Steen Jakobsen, Chief Economist at Saxo Bank. saying Trustnet.

“A world that runs in a vacuum will have to wake up and start creating reforms, not because it wants to, but because it has to.”

One of the predictions listed is not only interesting but could also have far-reaching consequences if it really came to be: the International Monetary Fund (IMF) and the World Bank could turn their backs on using Gross Domestic Product (GDP) as their Growth indicator for 2019, instead, is directed to productivity, as a measure of the growth of countries.

“They [IMF and World Bank] they argue that GDP has failed to capture the real impact of low-cost, technology-based services, “Jakobsen was said to have said.

“(The two organizations) have been unable to account for environmental problems, as witnessed by the dire effects of pollution on human health and the environment in India and other parts of the world.”

Neglecting productivity

For a country truly invested in the health and happiness of its people, Saxo He says It would have to produce more for each worker than it has hitherto, making productivity a more interesting measure of national progress.

Until now, the world’s governments have focused on using Gross Domestic Product (GDP), a traditional choice of metric to measure growth. But this has also allowed many world economies to neglect considering or improving their ‘productivity’.

Saxo’s list of 10 outlandish predictions for 2019. Image: Saxo Bank

GDP has many advantages and flaws, and its biggest drawback is that it simply does not capture the real impact of low-cost, technology-based services, and is not designed to account for environmental issues, which are of great importance. nowadays.

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