Browsing: IMF

The International Monetary Fund (IMF) has raised concerns about overspending by the US government, warning it has been reigniting inflation risks and undermining financial stability around the world.

The IMF’s World Economic Outlook next week will highlight global growth that is marginally stronger on account of robust activity in the US and in many emerging market economies. However, there are still plenty of things to worry about, IMF chief Kristalina Georgieva said.

Those countries — ranging from China, the world’s second-largest economy, to default-prone Argentina — have become so embedded in the global economy, particularly via trade and commodity value chains, that they are “no longer simply on the receiving end of global shocks”

The announcement followed a record $35bln investment deal with UAE and coincided with a sharp devaluation of the currency and a 600-basis-point increase in the central bank’s overnight interest rates, breathing new life into Egypt’s flagging finances