IMF: Ac­count im­bal­ances may dis­rupt global marts

New Straits Times - - Business / World - Reuters

The way a few large coun­tries run big cur­rent ac­count deficits and oth­ers have large sur­pluses poses a risk to the global econ­omy and could dis­rupt fi­nan­cial mar­kets, said a se­nior In­ter­na­tional Mon­e­tary Fund (IMF) of­fi­cial yes­ter­day.

Co­op­er­a­tion among coun­tries with such deficits and those with sur­pluses is re­quired to ad­dress such im­bal­ances, said IMF deputy man­ag­ing di­rec­tor Mit­suhiro Fu­ru­sawa at a sem­i­nar here.

“We have wit­nessed sus­tained pe­ri­ods of im­bal­ances. While they have nar­rowed since the (global fi­nan­cial) cri­sis, they re­main above de­sir­able lev­els,” he said.

Global im­bal­ances have reemerged as a con­tentious topic in the in­ter­na­tional com­mu­nity as Pres­i­dent Don­ald Trump crit­i­cised coun­tries such as China, Ger­many and Ja­pan for ac­cu­mu­lat­ing big trade sur­pluses against the United States.

The IMF will fa­cil­i­tate global ef­forts to re­duce im­bal­ances by strength­en­ing safety nets that coun­tries can rely on in case they face dis­rup­tive cap­i­tal out­flows, with­out ac­cu­mu­lat­ing ex­ces­sive for­eign re­serves.

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