Global financial risk is rising, warns IMF
Conditions are still conducive to world economic growth, IMF says
Risks to the global financial system have risen somewhat in recent months as some emerging markets have struggled and trade war tension has persisted, the IMF has warned. The IMF, in its twice annual assessment of global financial stability, said conditions remain broadly conducive to economic growth, but are at risk of worsening should emerging markets deteriorate further or trade tensions escalate. Resilience “New vulnerabilities have emerged and the resilience of the global financial system has yet to be tested,” the IMF said in the latest Global Financial Stability Report. And the IMF is worried that market participants “appear complacent” about the potential risks that could be produced by a “sudden, sharp tightening of conditions”, such as rising interest rates or declining access to capital. At the top of the list are worries about emerging economies, especially Argentina and Turkey, two countries with heavy external debt that have had to raise interest rates sharply in recen...
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