IMF warns of various financial stability risks

The International Monetary Fund (IMF) has warned that "friendshoring," or the practice of outsourcing to countries with close ties, could pose a risk to global growth and financial stability. The IMF stated that this trend could lead to a concentration of economic activity in certain regions, making them more vulnerable to shocks. The organization also noted that cross-border trade has been declining since the financial crisis, and urged countries to resist protectionism and promote open trade policies.