IMF: Consolidated Multilateral Surveillance Report

Emerging market and developing economies lost momentum, but growth remains strong. 

The softening of growth in emerging market and developing economies is related to weaker export demand from the euro area crisis, but mainly reflects domestic factors. Growth has been slowed in some countries by policy tightening and in others by natural disasters. In the Middle East and North Africa, growth has been disrupted by the ongoing effects of the Arab Spring. Furthermore, swings in sentiment due to events in Europe have increased the volatility of exchange rates and capital flows to emerging market economies. However, unlike the major advanced economies, many emerging and developing economies do not have much, if any, spare capacity. Also, various economies continue to see elevated domestic credit growth, notwithstanding some tightening of lending conditions.

The United States and Japan...

...have high and rising debt burdens but lack agreed measures to  put public debt on a sustainable medium-term path. This is raising questions about how they can maintain growth in the face of the needed adjustment. In the absence of structural, productivity-enhancing reforms, it is difficult to see anything but a long slow grind of tepid growth and small employment gains for many years to come in many economies.

In the euro area:

...the ECB must continue to stand ready to intervene to maintain orderly
conditions in bond markets and thereby facilitate the pass-through of monetary
policy to the real economy.

In emerging markets

Many of these economies have had an unusually good run over the past decade, supported by rapid credit growth or high commodity prices. To the extent that credit growth is manifestation of financial deepening, this has been positive for growth. But in various economies, credit cannot continue to expand at its present pace without raising serious concerns about the quality of bank lending. Another consideration is that commodity prices are unlikely to grow at the elevated pace witnessed over the past decade, notwithstanding short-term spikes related to geopolitical tensions. This means that fiscal and other policies may well have to adapt to lower potential output growth, and therefore countries need to guard against overstimulating activity in the short term.

And to ensure that  all the countries will increase the fund to save europe...

Everyone is connected and all have a part to play to  secure sufficient global  aggregate  demand.  Austerity alone cannot treat the economic malaise in the major  advanced economies. With demand generally weak, countries that have easy access to  market funding should not fiscally adjust  as much as countries without access to market  funding. More generally, countries with high saving rates should seek to address distortions  that weigh on consumption, while those that have had too much credit-driven growth must do the opposite. And all need to work toward creating a stronger international monetary  and financial system. This would provide room for positive spillovers and feedback loops that can ultimately solidify global demand, promoting employment and more inclusive growth.