By Greg Williams
The International Monetary Fund (IMF) released its bi-annual report on global economic stability, warning that the financial system could face serious risks in the year ahead. Ahead of the IMF/World Bank Spring Meetings in Washington, the Global Financial Stability Report calls for continued oversight in the financial sector.
"The IMF is concerned that some political shifts in wealthy countries could lead to a lack of cooperation in the financial system," noted Eric LeCompte who tracks the IMF reports and is the Executive Director of the religious development coalition Jubilee USA. "It's clear the IMF is concerned with roll backs of transparency regulations and how that will impact global financial stability."
The Global Financial Stability Report points out that rising instability in the developed world will raise risk premiums for developing countries, making public debt more expensive and reducing their ability to handle other external shocks.
"Everyone is becoming more concerned with unsustainable debts in both poor and wealthy countries," stated LeCompte who serves on United Nation finance expert groups. "I'm concerned that high debt burdens and more risky market behavior will lead to another financial crisis."
Yesterday, the IMF released its bi-annual World Economic Outlook report, which also warned about global financial stability risks. The report predicts that global growth will continue at 3.5% through 2017.
Read the April 2017 Global Financial Stability Report
Read International Monetary Fund's April 2017 World Economic Outlook report