2024-04-20 04:37:46
Financial markets face three major short-term risks.
As Day.Az reported on Tuesday with reference to Trend, Tobias Adrian, financial advisor and director of the IMF’s Monetary Systems and Capital Markets Department, said this today during a briefing on the global financial stability report at the IMF Spring Meetings in Washington.
“We are seeing high optimism in financial markets. Inflation is expected to return to target in countries around the world, while economic activity is expected to slow. Credit spreads have narrowed even for riskier borrowers. Many countries have been isolated from global capital markets over the past year or year and a half, have returned to the market since the beginning of the year. However, there are some short- and medium-term risks,” Adrian said.
He noted that short-term risks are associated primarily with inflation.
“We are forecasting a decline in inflation. But there is certainly some variation across countries in how quickly inflation falls and what central banks should do in the future to bring inflation back to target. That’s one risk. The second short-term risk is “We see fairly low volatility, fairly high correlation between asset markets, while fundamental uncertainty continues to remain somewhat elevated. There are a lot of geopolitical tensions in the world that may lead to a reassessment of the economic situation in the future.” , – said Adrian.
He added that the third issue concerns narrowing credit spreads and core credit quality, which is deteriorating in some regions.
“Overall the global economy is very strong. We saw that in the US and just yesterday China announced higher than expected GDP numbers. So we are seeing a lot of progress, but in certain countries default rates are rising and that is a bit of a weakness.” , – said Adrian.
It should be noted that on April 15, the Spring Meetings of the International Monetary Fund and the World Bank Group started in Washington.
Major ministerial meetings and events will be held April 17-19, and other meetings will be held April 15-20.
Key events include meetings of the Development Committee and the International Monetary and Financial Committee of the IMF, which discuss the progress of the work of the World Bank Group and the IMF.
The Spring Meetings bring together central bankers, finance and development ministers, parliamentarians, private sector representatives, civil society organizations and academics to discuss issues of global concern, including the global economy, poverty eradication, and economic development.
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