IMF Economic and Fiscal Updates – April 2016

(CC) World Bank Photo Collection / FlickrThe IMF has just released three reports, the latest World Economic Outlook (WEO), “Too Slow for Too Long,” the update to the Global Financial Stability Report (GFSR), “Potent Policies for a Successful Normalization;” and the Fiscal Monitor (FM), “Acting Now, Acting Together.”

According to the WEO, The baseline projection for global growth in 2016 is a modest 3.2 percent. . The recovery is projected to strengthen in 2017 and beyond, driven primarily by emerging market and developing economies, as conditions in stressed economies start gradually to normalize. But uncertainty has increased, and risks of weaker growth scenarios are becoming more tangible.

The update of the GFSR finds that global financial stability risks have risen since October 2015. The report finds that the outlook has deteriorated in advanced economies because of heightened uncertainty and setbacks to growth and confidence, while declines in oil and commodity prices and slower growth have kept risks elevated in emerging markets.

According to the IMF’s FM, the global economy remains fragile at this time. While the recovery in advanced economies is softening, many emerging market and developing economies have experienced a significant economic slowdown, and some large countries show signs of distress. Global risk aversion has risen, and commodity prices have continued to fall since the April 2015 Fiscal Monitor.

 

Access World Economic Outlook here.

Access Global Financial Stability Report here.

Access Fiscal Monitor here.