Powered by MOMENTUM MEDIA
subscribe to our newsletter

Risks to growth ‘skewed to the downside’: IMF

The International Monetary Fund has published a new report that examines the outlook for global growth in an environment of political uncertainty.

The IMF believes risks to the global growth outlook are two sided but are assessed to be skewed to the downside, especially over the medium term.

“Recent political developments highlight a fraying consensus about the benefits of cross-border economic integration,” the IMF said.

“A potential widening of global imbalances coupled with sharp exchange rate movements, should those occur in response to major policy shifts, could further intensify protectionist pressures.

Increased restrictions on global trade and migration would hurt productivity and incomes, and take an immediate toll on market sentiment.”

Advertisement
Advertisement

PROMOTED CONTENT


On a positive note, the IMF predicts that after a lacklustre outturn in 2016, economic activity is projected to pick up pace in 2017 and 2018, especially in emerging market and developing economies.

“However, there is a wide dispersion of possible outcomes around the projections, given uncertainty surrounding the policy stance of the incoming US administration and its global ramifications,” it said.

The IMF said that the assumptions underpinning the forecast should be more specific by the time of the April 2017 World Economic Outlook, as more clarity emerges on US policies and their implications for the global economy.

[Related: High household debt changes bank outlook to 'negative']

Risks to growth ‘skewed to the downside’: IMF
mortgagebusiness

Latest News

US-based global asset manager Ares Management has made a non-binding conditional proposal to bid for 100 per cent of AMP Ltd shares. ...

The major bank’s FY20 cash profit has plummeted 42 per cent on the prior comparable period, driven by full-year credit impairment charges ...

A former property developer has been found guilty of fraud in relation to obtaining funds from SMSF investors following an ASIC investigatio...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Court cases and penalties

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.