'With the recent increase in financial market volatility, the fog around the world economic outlook has thickened,' says the International Monetary Fund.
– creates a situation where “funding conditions for all banks tighten, due to greater concern for bank solvency and potential exposures across the financial system,” the IMF said.
This “moderate tightening” of financial conditions could slice 0.3 percentage point off of global growth for 2023, cutting it to 2.5%. The Fund also included a severe downside scenario with much broader impacts from bank balance sheet risks, leading toin the US and other advanced economies, a major pullback in household spending, and a “risk-off” flight of investment funds to safe-haven dollar-denominated assets.
Emerging market economies would be hit hard by lower demand for exports, currency depreciation, and a flare-up of inflation. This scenario, which Gourinchas put at a 15% probability, could slash 2023 growth by as much as 1.8 percentage points, reducing it to 1% – a level that implies near-zero GDP growth per capita. The negative impact could be about one-quarter of the recessionary impact of the 2008-2009 financial crisis.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
IMF's Georgieva says 44 countries interested in new resilience trust loansSo far, Rwanda, Barbados, Costa Rica, Bangladesh, and Jamaica have reached agreements for loan programs from the International Monetary Fund's Resilience and Sustainability Trust.
Read more »
TRIVIA: Get to know Mister International fourth runner-up MJ OrdillanoParañaque city heartthrob Myron Jude “MJ” Ordillano made the country proud after his strong finish in the Mister International 2022 pageant held at the New Frontier Theater last October 30. Although he failed to win the title, which was last won by Mariano Perez Flormata, Jr. in 2014, he placed fourth runner-up in the competition. Dominican Republic bet Manu Franco was hailed as the winner. On his Instagram post, MJ thanked everyone for their amazing support throughout his journey. He said, “I can not comprehend the amount of support and love I have received and the beautiful messages from many different people
Read more »
World Bank, IMF spring meetings to get underway in complex economic environmentThe World Bank and International Monetary Fund's spring meetings get underway later this week with an ambitious reform and fundraising agenda likely to be overshadowed by concerns over high inflation, rising geopolitical tension and financial stability.
Read more »
Debt crunch looms for weaker economies with a wall of bond maturities aheadA combination of sticky high interest rates and lackluster global growth could push a number of emerging economies that are facing soaring refinancing needs into debt difficulties next year.
Read more »
NAIA arrivals, departures breach 1 million during Holy WeekMANILA, Philippines — The Manila International Airport Authority (MIAA) on Monday said it recorded a total of 1,051,513 passenger arrivals and departures at the Ninoy Aquino International
Read more »