Posted on February 24, 2016 by iMFdirect
By iMFdirect
Shanghai will welcome finance ministers and central bank governors for the first ministerial meeting under China’s Group of Twenty presidency this weekend. The meeting comes at a critical time for the global economy. A note by IMF staff prepared as background for the G20 meeting, Global Prospects and Policy Challenges, points to a tepid recovery, and warns that weaker global growth might well be in the cards. This calls for a strong policy response, both national and multilateral, including from the G20.
Why weaker growth? The G20 Surveillance Note (G20 Note) cites a variety of factors at work: concerns about the global impact of China’s transition to more balanced growth; signs of distress in other large emerging markets, including from falling commodity prices; and a rise in global risk aversion, leading to substantial declines in equity markets.