IMF warns of ‘vulnerabilities’ that could derail global recovery

Financial Times, Oct 11, 2017
by Shawn Donnan

The International Monetary Fund has warned that good times in the global economy mask longer-term risks, including a $135tn debt pile in G20 nations that companies and consumers are already finding difficult to service.

A day after upgrading its global growth forecasts for this year and next the IMF warned on Wednesday that benign economic conditions were fuelling an appetite for risk that, together with central banks’ response to the 2008 global crisis, appeared to be laying the ground for a new financial crunch. 

“While the waters seem calm, vulnerabilities are building under the surface [and] if left unattended, these could derail the global recovery,” said Tobias Adrian, of the IMF’s financial stability watchdog. 

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