IMF: Global growth "remains subdued"
Washington - The global economic recovery continues with improvements in long-lagging advanced economies but moderating growth in emerging markets, the International Monetary Fund's managing committee said Saturday.
"Growth remains subdued, however, and downside risks persist, with some new risks emerging," the committee said in its communique to conclude the IMF-World Bank annual meetings in Washington.
Immediate risks include the stalemate in the US Congress over budget and debt issues. The IMF called for "urgent action to address short-term fiscal uncertainties" in the United States.
The looming tightening of US monetary policy - which has already affected capital flows and long-term interest rates just from market expectations- has potential spillovers especially in emerging and developing economies.
"The eventual transition toward the normalization of monetary policy in the context of strengthened and sustained growth should be well-timed, carefully calibrated and clearly communicated," the IMF committee said.//DPA
