The IMF’s Outlook: More Risk, Less Optimism

by Stratfor
Financial Sense

The International Monetary Fund (IMF) has had a dour week. On Tuesday, the IMF released its biannual World Economic Outlook, replete with gross domestic product forecast downgrades and tales of geopolitical risk. Also, the organization’s former chief economist, Olivier Blanchard, stressed the dangers of a solvency crisis that could befall Japan at some point.

Of course, the three months since the IMF released its last forecasts have been tumultuous, rife with upheavals in the stock markets, evidence that some central banks are losing control of their economies, China’s continued decline and a bitter Brexit battle raging in the United Kingdom. Coupled with worrisome business confidence and investment figures, these developments have led the IMF to lower its 2016 GDP forecasts almost across the board.

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