IMF warns of ‘somewhat’ greater global financial risk

IMF warns of ‘somewhat’ greater global financial risk

international monetary fund headquarters.




Risks to the global financial system have risen somewhat in recent months as some emerging markets have struggled and trade war tensions have persisted, the International Monetary Fund warned Tuesday.

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.

“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 worried that market participants “appear complacent” about the potential risks which could be produced by a “sudden, sharp tightening of conditions” — like rising interest rates or declining access to capital.


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