Pursuits
IMF Says Global Financial Risks Rising as Growth Outlook Weakens
- Report says policy measures are needed to avoid market turmoil
- Fund cites chance of `financial stagnation' that saps output
What Threats Are There to Global Financial Stability?
This article is for subscribers only.
Risks to global financial stability are rising as growth slows and commodity prices fall, posing the danger of an eventual stagnation in credit that saps world output, according to the International Monetary Fund.
The gloomy mix of conditions “increases the urgency of a broad-based policy response, both individually and collectively, to raise growth, manage vulnerabilities and boost confidence,” the IMF Wednesday in its semiannual report on financial stability. Without such actions, market turmoil may recur, eventually increasing chances of a prolonged slowdown marked by financial institutions struggling with “impaired balance sheets for an extended period of time.”