IMF Urges Vigilance as Financial Stability Risks Rise

The International Monetary Fund (IMF) has warned that risks to financial stability have increased and called for continued vigilance, despite actions by advanced economies calming market stress. The IMF managing director has reiterated her view that 2023 would be another challenging year, with global growth slowing to below 3% due to scarring from the pandemic, the war in Ukraine, and monetary tightening. The IMF estimates that every 1 percentage point increase in GDP growth in China results in a 0.3 percentage point rise in growth in other Asian economies. The IMF is paying close attention to the most vulnerable countries, particularly low-income countries with high levels of debt.