IMF: Risk of global instability rises
By Duncan Richardson, News Editor
16 Apr 2015
A new report by the International Monetary Fund (IMF) warns of increased instability in the world economy. The IMF confirmed oil and commodity based economies have been hit hard as prices for raw materials have tumbled. Volatility in currency markets has risen with emerging economies hit the hardest.
Financial counsellor for the IMF, Jose Vinals, confirmed the risks to the global financial system have risen since October and risks are becoming harder to identify. The IMF also warned an interest rate hike in the U.S, which is anticipated for later this year could add to instability in the global economy. Interestingly the IMF also warned that keeping interest rates at near zero also poses its own set of risks. Declining property prices in China is also a major area for concern for the IMF.
The IMF’s warning comes at a time when stock, bond and many property markets are at all-time highs and Greece edges closer to default.