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IMF: the increasing financial risk in emerging markets
10/24/15
International Monetary Fund warned of the increasing risk in emerging markets, at a time when strong economic growth in the United States and the European Union will lead to growth and financial stability in the two regions.The IMF said in a report released last week in the capital, Lima Peronism "Despite this improvement in the advanced economies, the fragility of the emerging markets are still growing, and risk appetite declining, with increasing liquidity risk." It is likely that the Federal Reserve starts (Fed) increased its key interest rate this year after having been close to zero percent since late 2008, which threatens to decrease the flow of funds to emerging markets. Fund urged in his report, which was issued under the title of "Global Financial Stability Report," the central banks to provide data "clear and consistent" on monetary policies in order to be allowed to absorb any increase in US interest rates easily. The increase in US interest rates will be one of the factors that actually affect the financial conditions in emerging markets, while the IMF expects global economic growth rate of 4% during the current year, compared with 6.4% last year and 5% the year before. IMF expects growth in the advanced economies at a rate of 2% during the current year, compared with 8.1% last year and 1.1% in 2013. With regard to the euro-zone Fund said that credit conditions have improved and the increasing demand for loans with the European Central Bank to keep the highly adaptive monetary policy. However, many of the emerging markets have been able to avoid the worst effects of the global financial crisis of the years 2009/2008, where borrowed companies more money, but this additional feature, has made these companies more vulnerable, particularly in the goods sectors, which saw a big drop in prices Recently, along with the high price of the dollar has led to the intensification of the problem. The IMF said: "The impact of this loan, and exchange rate fluctuations led to increase the sensitivity of these economies to tighten global financial conditions."
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10/24/15
International Monetary Fund warned of the increasing risk in emerging markets, at a time when strong economic growth in the United States and the European Union will lead to growth and financial stability in the two regions.The IMF said in a report released last week in the capital, Lima Peronism "Despite this improvement in the advanced economies, the fragility of the emerging markets are still growing, and risk appetite declining, with increasing liquidity risk." It is likely that the Federal Reserve starts (Fed) increased its key interest rate this year after having been close to zero percent since late 2008, which threatens to decrease the flow of funds to emerging markets. Fund urged in his report, which was issued under the title of "Global Financial Stability Report," the central banks to provide data "clear and consistent" on monetary policies in order to be allowed to absorb any increase in US interest rates easily. The increase in US interest rates will be one of the factors that actually affect the financial conditions in emerging markets, while the IMF expects global economic growth rate of 4% during the current year, compared with 6.4% last year and 5% the year before. IMF expects growth in the advanced economies at a rate of 2% during the current year, compared with 8.1% last year and 1.1% in 2013. With regard to the euro-zone Fund said that credit conditions have improved and the increasing demand for loans with the European Central Bank to keep the highly adaptive monetary policy. However, many of the emerging markets have been able to avoid the worst effects of the global financial crisis of the years 2009/2008, where borrowed companies more money, but this additional feature, has made these companies more vulnerable, particularly in the goods sectors, which saw a big drop in prices Recently, along with the high price of the dollar has led to the intensification of the problem. The IMF said: "The impact of this loan, and exchange rate fluctuations led to increase the sensitivity of these economies to tighten global financial conditions."
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