IMF sees medium-term risks to global economy

The International Monetary Fund Tuesday urged policymakers to keep a close eye on financial vulnerabilities such as rising debt levels that could pose medium-term risks to the global economy and said further monetary easing was not the answer. The global lender’s most recent economic outlook forecasts a slight rebound of global economic activity this year and next, albeit to a lower level than previously forecast, after global monetary easing helped shore up growth in 2019 .

Further easing of global financial conditions at this point in the economic cycle and rising financial vulnerabilities could threaten growth in the medium term, Tobias Adrian, director of the IMF’s monetary and capital markets department, and Fabio Natalucci, his deputy, wrote in a blog.

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