Blog post by Óscar Arce and David Sondermann |  Over the first two decades of the currency union, labour productivity (output per worker) in the euro area has been weak, at least when compared to other advanced economies. While productivity grew annually on average by 0.6 percent from 1999 to 2019, the average pace was more than twice as fast in the United States. Productivity somewhat recovered after the pandemic, but more recently the picture changed for the worse...

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Today, the Biden-Harris Administration issued a Notice of Funding Opportunity (NOFO) seeking proposals from eligible applicants for activities to establish and operate a CHIPS Manufacturing USA institute focused on digital twins for the semiconductor industry. Digital twins are virtual models that mimic the structure, context, and behavior of a physical counterpart. The CHIPS for America Program anticipates up to approximately $285 million for a first-of-its-kind institute focused on the development, validation, and use of digital twins for semiconductor manufacturing, advanced...

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Keynote Address by Kristalina Georgieva, IMF Managing Director, at the Annual EU Budget Conference 2024. What a pleasure to be here today, surrounded by friends, on a brief stopover between Saudi Arabia and Chile. Whenever I’m in Brussels I feel I’m at home. And home it was for me, for seven years, working at the European Commission. Someone famous may have had seven years in Tibet, I had my seven years in Brussels—including serving as Vice President for Budget and Human Resources...

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On May 1, U.S. Secretary of Commerce Gina Raimondo celebrated World Trade Month by reaffirming the Biden-Harris Administration’s commitment to creating a more sustainable and inclusive economy through international trade. “International trade is essential to our nation’s economic growth and helps Americans build more resilient businesses and communities,” said Secretary Raimondo. “Throughout World Trade Month, the Commerce Department will celebrate and reaffirm the Biden-Harris Administration’s enduring commitment to deepening our economic cooperation with allies, bolstering supply chain resilience, ensuring a...

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The European Commission received today the final recommendations of the High-Level Expert Group on scaling up sustainable finance in low-and middle-income countries (HLEG), in the presence of International Monetary Fund Managing Director Kristalina Georgieva. Since 2022, emerging markets have experienced the worst ever capital outflows. The report provides concrete and innovative actions the Commission can take to mobilise private capital for sustainable investments in Global Gateway partner countries. It outlines ten recommendations, with a focus on establishing an enhanced strategic engagement...

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Announcements include draft guidance documents, a draft plan for international standards, and a new measurement program opening for public comment The U.S. Department of Commerce announced today, following the 180-day mark since President Biden’s Executive Order (EO) on the Safe, Secure and Trustworthy Development of AI, several new announcements related to the EO. The Department’s National Institute of Standards and Technology (NIST) has released four draft publications intended to help improve the safety, security and trustworthiness of artificial intelligence (AI)...

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The Commission has today adopted proposals for Council decisions on the signing and provisional application, as well as on the conclusion of the Association Agreement between the EU and Andorra and San Marino, respectively. This represents a key step towards the ratification of the agreement, while marking a significant milestone in EU efforts to develop a special relationship with neighbouring countries. The Association Agreement will allow Andorra and San Marino to participate in the EU's internal market and enhance cooperation...

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The Commission has adopted an amendment to the 2023-24 Work Programme of Horizon Europe, the EU's research and innovation programme. The amendment mobilises previously unallocated Horizon Europe funding to increase the 2024 budget by nearly €1.4 billion to a total of €7.3 billion. This amendment includes an investment of nearly €650 million in the EU Missions aiming to contribute to solving some of the challenges facing Europe, for example, making more than 100 cities climate neutral, a New European...

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Despite gloomy predictions, the global economy remains remarkably resilient, with steady growth and inflation slowing almost as quickly as it rose. The journey has been eventful, starting with supply-chain disruptions in the aftermath of the pandemic, an energy and food crisis triggered by Russia’s war on Ukraine, a considerable surge in inflation, followed by a globally synchronized monetary policy tightening. Global growth bottomed out at the end of 2022, at 2.3 percent, shortly after median headline inflation peaked at 9.4...

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This blog is based on Chapter 3 of the IMF's April 2024 Global Financial Stability Report | Cyberattacks have more than doubled since the pandemic. While companies have historically suffered relatively modest direct losses from cyberattacks, some have experienced a much heavier toll. US credit reporting agency Equifax, for example, paid more than $1 billion in penalties after a major data breach in 2017 that affected about 150 million consumers. As we show in a chapter of the April 2024 Global Financial...

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