Thu, Oct 06, 2016 - Page 11 News List

IMF warns of protectionist threat to global growth

AFP, WASHINGTON

The IMF report cited an alarming growth in private-sector credit in China, propping up state enterprises to postpone the recording of losses — risking an “eventual disruptive adjustment.”

Obstfeld pushed back against assertions that the IMF had been excessively alarmist in warning of the fallout of Britain’s vote to leave the EU.

The IMF said earlier this year that the Brexit vote could cause a recession in the UK.

Tuesday’s forecasts instead revised British growth upward by 0.1 percentage points for this year, to 1.8 percent, while it further downgraded next year’s outlook to 1.1 percent.

Obstfeld said British markets had reacted more favorably than anticipated, but that current circumstances were within the range of possibilities the IMF had initially published.

“We did focus on possible risks and those possible risks were there,” he said.

Additional reporting by CNA

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