IMF: Downside risks to the global economy have risen

By FXStreet FXStreet (Bali) – Reuters had access to an IMF report ahead of a G20 finance officials meeting, in which the IMF states that the ECB asset purchase program should be extended if no improvement on inflation, adding that downside risks to the global economy have risen.

According to the IMF: “A combination of threats including slower growth in China and rising market volatility could severely cut the outlook. Risks are tilted to the downside, and a simultaneous realization of some of these risks would imply a much weaker outlook.”

On China, the IMF reports notes: “The recent sharp equity market corrections should not discourage the authorities from continuing with reforms to give market mechanisms a more decisive role in the economy, eliminate distortions, and strengthen institutions.”
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Source:: FX Street