Risks of prolonged market turmoil in emerging markets and of deflation in the euro area are threatening the world's improved economic prospects, according to the International Monetary Fund (IMF).
The IMF, in a staff report prepared for central bankers and finance ministers from the Group of 20 (G-20), said the recovery is still weak and "significant downside risks remain." A January global growth forecast of 3.7 percent for this year, from 3 percent in 2013, hinges on recent market volatility from Turkey to Brazil being short-lived, according to the report.
"Capital outflows, higher interest rates, and sharp currency depreciation in emerging economies remain a key concern," according to the report prepared ahead of the G-20 meeting February 22 to 23 in Sydney. "A new risk stems from very low inflation in the euro area, where long-term inflation expectations might drift down, raising deflation risks in the event of a serious adverse shock to activity."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
