The global economy is confronting increased risks to growth even as the financial system likely withstands recent bank turmoil, top ministers said after meeting in Washington this week.
(Bloomberg) — The global economy is confronting increased risks to growth even as the financial system likely withstands recent bank turmoil, top ministers said after meeting in Washington this week.
“The growth outlook remains subdued and downside risks have increased,” according to a statement Friday by Spanish Economy Minister Nadia Calvino, who chairs the International Monetary Fund’s top advisory panel.
“Policymakers have taken swift actions to strengthen confidence in the banking system, which remains sound and resilient, supported by the reforms implemented after the 2008-09 global financial crisis,” according to the statement.
The release was issued as a chair’s statement because the panel, the International Monetary and Financial Committee, failed to reach full agreement on a joint communique amid disagreements over language around Russia’s invasion of Ukraine.
The war “continues to be the single most important source of uncertainty around the world,” Calvino said during a press briefing Friday in Washington.
The statement said officials “will address data, supervisory, and regulatory gaps in the bank and in particular the non-bank financial sectors, where further progress in addressing vulnerabilities is important.”
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