The latest IMF Global Financial Stability Report (IMF GFSR) highlights that financial stability risks have been contained so far, due to ongoing policy support, but recent optimism has ‘faded on growing concerns about the strength of the global recovery, and ongoing supply chain disruptions intensified inflation concerns’.
The IMF also discussed the ‘opportunities and challenges of the crypto ecosystem’ and highlighted risks that can arise ‘from a lack of operational or cyber resilience associated with crypto asset providers’. Finally, the IMF discussed the role that investment funds can play to support the transition to a green economy.
Earlier, the IMF downgraded its outlook for global recovery to 5.9% this year compared to projections of 6% in June, citing supply chain disruptions and the difference in vaccination rates between advanced and developing economies.
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