G20 IMF warns of economic hit

WASHINGTON Washington, International Monetary Fund (IMF) warned yesterday that the global economy will be very vulnerable, and called for a new mechanism to prevent the most vulnerable countries. In a report on the economic challenges before the G20 finance ministers' meeting in Shanghai, according to the IMF Global economic growth has fallen and may be in trouble due to the market turmoil and falling oil prices and geopolitical conflicts. The IMF said: 'The recovery of the global economy has continued to decline in the financial crisis increasingly and falling asset prices. The foundation said: 'strong policy response, both national and international levels, it is essential to manage risk and boost the global economy The higher growth. The report will be presented to finance ministers and central bank presidents of the Group of 20 meeting in Shanghai Friday and Saturday, said there was speculation that the IMF will cut its forecast for economic growth Global in 2016 in only 6 weeks after its latest forecast that the global economy will grow by 3, 4 percent. The report said: the global economic activity fell with no expectations at the end of 2015, and it has continued to decline in early 2016, when falling asset values. How countries should respond to the threat to economic growth will be the main agenda in the discussion in Shanghai. The IMF is for countries to increase fiscal stimulus and reforms to boost demand. The fund has said that central banks, including the US central bank also needs to keep monetary policy flexibility to ensure that the financial situation more restrictions will not affect the economic growth momentum. The IMF, however, that to avoid relying too much on monetary policy, fiscal policy may boost short-term recovery of the global economy where appropriate and as long as they have the opportunity to implement fiscal policies that focus on investment. Apart from the global economic crisis due to the recession and falling commodity prices, the IMF said geopolitical issues such as Syrian refugee crisis and spreading Zika virus in Latin America, also pose a threat to the economy. For carrying previous biggest burden of this crisis and some countries which are ready to understand that easily will be affected by a drop in commodity prices IMF said the global financial safety net program which includes personal their own funds may be strengthened. With no clear IMF calls for innovative financing mechanisms to help countries in financial turmoil. The report said: 'Many countries are in the middle of the crisis, this is a burden for other countries, which are often opportunity to implement fiscal policy and limited capacity