Advanced economies, including
The IMF said there was scope for better coordination of central bank exit plans, something many emerging market policymakers have called for as the Federal Reserve has begun to wind back its US support for the economy.
In a briefing note prepared for upcoming Group of 20 meetings, IMF staff said the outlook for global growth was similar to its last assessment in January, with growth of about 3.75 per cent seen for this year and 4.0 per cent in 2015.
But there were new risks from very low inflation in the euro zone and emerging markets needed sound economic policies and flexible exchange rates to weather turbulence.
"Capital outflows, higher interest rates, and sharp currency depreciation in emerging economies remain a key concern and a persistent tightening of financial conditions could undercut investment and growth in some countries given corporate vulnerabilities," the note said, ahead of meetings of G20 finance ministers and central bank governors in
Some emerging market policymakers have blamed the Fed for market upsets in January and last year, when the US central bank began to mull withdrawing its stimulus. The Fed has started to slow the pace of its asset purchases, which have been trimmed to
The IMF said there was scope for better cooperation on unwinding unconventional monetary policy, such as wider central bank discussion of exit plans, and urged the Fed to beware of ending its support too quickly.
"With prospects improving, it will be critical to avoid a premature withdrawal of monetary policy accommodation, including in
In the euro area, the
The IMF said an economic analysis showed implementing a set of structural reforms, including fiscal and labour market changes and infrastructure investment, would add 0.5 percentage points to annual global economic growth over the next five years.
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