IMF announces World Economy as “Highly Vulnerable”

IMF announces World Economy as “Highly Vulnerable”

IMF announces World Economy as “Highly Vulnerable”

As per International Monetary Funds, the world economy is slashing specified in its report “The Global Prospects and Policy Changes”. Recently in a meeting along with the finance chiefs of powerful group of 20 economies. During the meeting, the IMF forecasted that the world economy is “Highly Vulnerable” and the countries have to commence campaigns to support various vulnerable countries. 

During the meeting lender of world’s economic crisis said specifically that as the world economy is quite slow and various other market crashes across the geopolitical scenario might lead to a conflict in the business of the various premier countries. As the financial market is going through a havoc, slow recovery globally and falling asset prices have been a concern of the world as per International Monetary Funds. 


IMF also said that policies should be made in a way which provide results both at national and multinational levels and resurrects the global economy on a prosperous path.  These reports and proposals will be shown to the finance ministers and central bank chiefs in the G20 meeting that will be held this Friday and Saturday. The Fund also said that it has been given the forecast in just six weeks after it had already informed about its estimate ratio of 3.4 percent. 
The report that have been researched through various parameters which encapsulates that the activities globally have decreased during the end of 2015 and commencing of 2016 along with falling price of assets.  The main agenda of the meeting will be to how to boost the world economy and fight with the threats of growth. IMF suggests the countries to make some specific reforms in their laws in order to increase the fiscal deficits. 

It has been suggesting various central banks of the world including US Central Reserve and various premier banks to make policies in a way which are flexible to the financial conditions and do not oppose the oppose the growth. IMF has been stressing time again on not relying on monetary policies rather than focusing on near-term fiscal policies wherein they support recovery and provide space for more investment in the economy. 

global finance

Across the globe there are various reason for such slowdown of world economy. The main reason starts from China’s sluggish economy along with unproductive and lowering of commodity prices. Various geopolitical issues like Syrian refugee crisis to the rise of infection in Latin America to dissemination of Zika Virus across the globe are also posing a threat on world economy. 

With main announcements on IMF’s basic programs including the world’s financial safety net shall be enhanced to support all the countries who are facing the crackdown head on and efficiently shouldering the world crisis. Such programs will also support other countries as well who are not quite fit but are vulnerable to such crisis. Thus creating a holistic umbrella for world economy. 

The fund also focused on calling for new mechanisms and ways to help countries across the globe from any sort of financial turmoil. The report broadly touches upon the reforms for the countries who are the centre of this financial turmoil and bearing the shocks. Such countries have very less fiscal space for investment and limited capacity. 
Thus, it’s time to create policies to help the economy to uplift itself from the crisis.